ST PAUL'S CATHEDRAL CHOIR SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020 Charity no. 312718
ST PAUL'S CATHEDRAL CHOIR SCHOOL ANNUAL REPORT AND FINANCIAL STATEMEF4TS FOR THE YEAR ETr4DED 31 DECEMBER 2020 Officers and professional advisers Tn]5tees' report Statement of trustee5' responsibilities statement 10 Independent auditor'5 report 11- 12 Statement of financial activities 13 Balance sheet 14 Notes to the financial statements
ST PAUL'S CATHEDRAL CHOIR SCHOOL OFFICERS AND PROFESSIONAL ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTELS Chapter of St Paul's Cathedral.. Tbe Deall, the Very Rev'd Dr David 131)n The Rev'd Canon James Milne The Rev'd Canoll Tricia Hillas (resigned 16 Febnry 2020) The Rev'd Canon Jonathan Brewster The Vellerable Sheila Watson Ms PAM Baxter M5 Sheila Nicoll Mr CleIent Hutton-mills {appointed 15 March 2021) GOVERNORS The Dean. tbe Very Rev'd Dr David Ison (Chair of Governors) The Rev'd Canon James Milne Tbe Rev'd Canon Tricia Hillas (resignated 16 Febnwy 2020) Mr Gavin Ralston V Mr5 Jill Aisher X Ctsl Edward Yorke Mr lan Wilson ' Mts Jane Sladdirt # Mrs Hatty Morley # Mr Mark Coote ' Ms Pim Baxter Mr Robert-Jan Tenunink {appoilld 18 May 2020) Member of the Finance and General Putposes Cornmitte¢ V Chair of Finance and Gelleral PLPOSes Committee
Member of the Education comlttee
X Chair of Education Committee HEADMASTER S Larter Evans BA (Hons), PGC4 FRSA BURSAR Mr Martin Kiddle CATHEDRAL REGISTRAR Ms Emma Davies CATHEDRAL DIRECTOR OF MUSIC Mr Andrew C8rwood+ +in attendance at all Goveming Body meetings REGISTERED OFFICE 2 New Change London EC4M 9AD CHARITY REGISTRATION f4UMBER 312718
ST PAUL'S CATHEDRAL CHOIR SCHOOL OFFICERS AND PROFESSIONAL ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020 BANKERS Lloyds TSB Bank plc 70- 71 Cheapside London EC2V 6EN SOLICITORS Winckworth Sherwood LLP Minerva House 5 Montague Close London SEI 8BB Veale Wasbrough Vizards LLP Bamards Inn 86 Fetter Lane London EC4A IAD AUDITOR Haysmacintyre LLP 10 Queen Street Place [D[on EC4R IAG INSURERS Ecclesiastical Insurance Office plc Beaufort House Brungwick Road Gloucester GLI IIZ
ST PAUL'S CATHEDRAL CHOIR SCHOOL INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ST PAUL'S CATHEDEL4L CHOIR SCHOOL FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees present their annual report and the audited financial statements for the year ended 31 December 2020, prepared in accordance with the Financial Reportiug Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Statement of Recommended Practice and the Charities Act 2011. STATUS AND ADMINISTRATION The Corporation of the Cathedral Church of St Paul in London (St Paul's Cathedral), operates St Paul's Cathedral S¢hool under Statute XVI of the Instrurnent established for St Paul's Cathedral dated 13 May 2000 and updated thereafter. The statute sets down the objectives for the school and the powers and procedures by which Chapter will ensure the proper llvdnagement of the School. The role of the Cathedral is as the seat of the Bishop of Ix)ndon a[ a centre for worship and mission. On I September 2005 an Instrument of Delegation delegated responsibility for the governance of the School to a fjtsverning Body (the current members of which are listed on Page 2 of this docurnent). The School. which is unincorporated and has charitable StaS. has its affairs overseen by a TTUStee body. The Trnstees of the school are the Chapter of St Paul's Cathedrdl. The Chapter also has representation on the Goveming Body. which consi$ts of up to 12 members. The Body has a Finance and General Putposes Sub-conllnittee, an Education CoMmite and working parties which are set up as the need arises. The Governors delegate day tts day nllagement responsibilities to the Headnuster and his Senior Managetnent Team which includes the Bursar. Deputy Head Academic, Deputy Head Pastoral, Deputy DSL and Head of Pre Prep. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document The School is governed by its tnstrument of Delcgation, which came into effect oll I September 2005 and is subject to a five yearly review with a cancellation clause. Governing Body The Governing Body, when complete, consists of The Dean and 4 members of Chapter, alld 7 lay governors. The initial lay governors were appointed by the Chapter, in consultation with the Headmaster. but lay governors are now elected at 11 Governors, meetings. Lay governors are appointed according to the specialist skn.lls they Can offer. The Cathedral and School have begun work to review the constitution of the Governing body within the Insttument of Delegatio and airn to separate the role tsf the Ikan frorn that of Chair of Governors and to recoTJsider the ternu and effect of the Instnunent of Delegation. As part of the strategy to review the schwl Governace Mr Robert-jan Temmink joined the Governing Body on 18 May 2020. At the governors meeting of 17 Febnwy 2020 it was agreed he should tak¢ over the role of Vite Chair previ(Trusly fulfilled by the Precentor. Trustee and Governor Training New trustees and governor$ are inducted into the work'n8 of the School by the Headmaster and Bursar, and are regularly Updated through briefings at the School and external trustee and governor training Courses The Governors rneet at least three times a year to deterrnine the general policy of the S¢hool and to review its overall management and control. The work of overseeing the implernentation of most of the Goveming Body's policies is carried out by the Finance and General PU05¢S Sub-committee, which meets before each meeting of the full Governing Body and at other times as required. The Governors. Education ComTnittee continued to Monitor the progress of the departntrI and stsff peer reviews carried out. Si Paul's Cathedral School is an active member of the Independent Association of Preparatory Schools (IAPS), for the promotion and maintenance ofpreparatory school stsndards generally, and of the Choir S¢hoo]s Association. It also takes part tn peer-group studies for the evaluation of quality and performance improvement methods. The school 15 also a member of the tndependent Schools Bursars. Association, givill8 It actess to the latest fLnancial and Manage¢t developments in the education sector. By co-operating with loul charities and state schools, the School endeavours to widen public access to the schooling it provides, and to awaken in the pupils an awareness of the social context of the education they receive at the School. See public benefit below. The extent of this work was limited in 2020 because of the restrcitions placed on all school activities by the impact of the Covid pandemic.
ST PAUL'S CATHEDRAL CHOIR SCHOOL TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES, REPORT (continued) REVIEW OF ACTIVITIES ATr4D ACHIEVEMENTS During the year there were on average 28 boy Chorisr$ aged berween 7 and 13, 169 day pupils of the sarne ages, and 60 pre- prep children aged between 4 and 7 on ihe school's roll. The whole school is mixed, although there are fewer girls than boy5 in the main school. At the end of 2020 were 99 girls in the sclK)0112019.. 1141. The School was extremely success] at moving its teaching and learning online in response to COVID. It took a'fw'l fast and innovate" approach. allowing teachers high degrees of autonomy which was agile and quick to respond to the needs of children according to age and sthge. and io the vagaries of children's home circumstances.The School trained its staff in Googleclassroom. and Microsoft Teams, and set up lis own secure YouTube chamiel days before the fjrst lockdown and moved direcdy into a full online provision for that first temi. During tha¢ time, Googlemeet was also introduced, os well as Zm. Initially. the School was noi able to provide for Key Worker children, bui arranged for cm'ldren to use a n¢ighbouring school. Partial lifring of restrictions brought ReceptiotL Year l and Year 6 back into school, with staff allocated to each bubble and moving a hybrid leaming environment wilh specialist teaching delivered remotely back into classrooms. In a second wave the School was able to offer provision for Key Worker children. and we also hosted the prep school aged children fro City of London School for Girls. Parent meerings and virtual open days moved online, where they currently remain Much ha5 been learned and the school conunues the momentum gained with the now widespread ease of using technology a¢ros5 the school. Pu"pils in the school achieved excelleni musi¢ exam results in December 2019, with 46 ex8rn5 take 720/0 of which were at merit or disiitlclion level_ From September-march Ipre-lockdowl) 10 regular instrument ensembles, 2 orche$trdS and five choirs rehearsed weekly. 5 internal concerts were held, and an additional 8 other public perforn)ances given. Frorn March to July (during lockdown). 3 choirs and l ensemble continued remoiely, and a (recorded) summer concert was produced. Sin¢e the oppointment of Mr Mark Kennedy as DiTe¢tor of Music, who joined us from Westminster Cathedral Choir Sch(x)I, the 8¢hool's Chamber Choir is being trained to sing o¢¢asional offices in the Cathedral. This was achieved on a nurnber of o¢¢asions until COVID. The intention is to return to this progronune. Trips, both at home and overseas, were not possible due to COVID. All of the leavers of 2019-20 went on to goryl senior h0o1$. 34 scholarships were offered to leavers, up more than 50/. year on year'.9 academic, 16 nJusic, 5 5poffj 2 art, 2 drama Scholar$'P$ with often substantial bursaries offered. Thi5 aclll'evement has been helped greatly by the high-quality teeching staff we have been able to relain and recruit in the face of intense competition from other London s¢hools and who continue to maintain high standards in an increasingly competstive market for senior school places in London and elsewhere. Risk Managem¢n¢ and principal risks and llncertainties A detailed Risk Management assessment is prepared annually for Governors to include both internal and external factor5 that nY impact on the operation. Their likelihood and potential impacts are assessed and any required action 15 forrnulated. The n1n risks under consideration include particularly the Covid pandemic and the irnpacL on trends with respect to pupil numbers. These are monitored and the number of ¢urnt applications were compared to previou5 years. Currently there are still three to four applicants per available place. With respect to stock market volatility and its iinpact on investments the school receives and acts upon advice from the Cathedral's Investment Advisory Cornmittee. Currently the School's investments are managed by CCLA. The proxtmity of St Paul's Cathedral and other City Institutions mean5 that the School is located in a sensitive and high profile area with respect to possible terrorist activity. Staff receive regular briefings from City of London Police specialists and attend the Cathedral's Se¢urity Advisory group meetings to ensure they are up to date Wlth the latest advice and amend any emergency procedures as appropriate. Robust plan5 are in place for dealing with emergencies that may arise either internally or externally to the h0O[. Day to day health and safety is monitored by the school Health and Safety ConIttee who are supported by PIB RL5k Management Advisors. This commiitee reports directly to the F&GP Committee including an annual review of all accidents involving pupils. As part of their annual review PIB will look at all of the required inspection reports which include PAT testing, fire and smoke alam) test, gas safety checks and kitchenequipment servicing. The School Building project comtnenced tn July 2019 and continued throughout 2020, with final secttonal Completion being 5, March 2021. An extension of time was granted to the contractor a a result of the impact of covid lockdowDS and work place restrictions. The fll1 project cost Is riow expected to be just over £8 M with the Commitment by the School to this costbeing in excess of£4.Om. A significant ItlYIdual donation oE£lm over 3 years will be used to redu¢e the level of extemal bank l(w) filnding and rnitigate the irnpact on
ST PAUL'S CATHEDRAL CHOIR SCHOOL TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 202 TRUSTEES, REPORT {conlinued) reserves. Fuwre budgets and forecasts have been updated to reflect the possible impacts on income and pupil nutnbers as a result of the COVID pand¢mic.' increased nvdrketing and other mitigation measures are in place, and the Governors will keep the situation under regular review. The financing of the building project will lead to a fall in the level of the School's reserves from 2020121 onwards but the Governors will maintain the reserves at prudent levels in line with their resaves policy. CHARITABLE OBJECTS St Paul's CadLedral School exists for the educatiotL nurture and eare of the chotisters of St Paul'5 Cathedral. It also has a responsibility to educat¢ such other pupils between the ages of four and thirteen as can be properly accommodated frorn time to tijne within the school. Alms and Prineiple5 St Paul's Cathedrat School is a Christian, co-educational community where the values of love, justice, tolerance, respect, honesty, service aTMI trust are encouraged and prdctised to PtDmote EX)Sitive relationships throughout the school comrnunity. The school aims to instil a love of learning through o broad curriculum. It aims to give each pupil the Oppornity to develop intellectually, sttially. p¢rsonally. physically, cultllrally and spiritually. All pupils are encouraged to work to the best of their ability and to achieve standards of excellence in all of their endeavour8. Through the ¢on)orate life of the school and through g(K)d pastoral care, the school encourages the independence of the individual as well as mutual responsibility. It atms to make its pupils aware of the wider conununity and encourages a close working relationship with parents and guardians. Principal Activity St Paul's Cathedral School's principal activity continues to be the provision of education in a boarding environment for the St Paul's Cathedral choristers, of which there ¢an be up to 36. In order to deliver a fman¢ially viable curriculum and to Cteate more balanced school ellvironment for the choristers, it educates approximately 220 day children from the ages of 4 to 13. Objectives for the Year The Govemors. Main objective Continues to be to educate all the School's pupils to at least the same high standatd achieved in previous years, so that they will be able fully to benefit from theirchosen seniorschool for the completion of their education in due ¢ourse. Our strategy for achieving thi$ 1$ to maintain a bigh teacher-to-pupil ratio, tailoring our services as appropriate in each case to suit indivsdual needs The School's building development of a new boarding block has allowed improvements to stsff a¢commcKlation and the ¢reation of new classroom space. The school will have two forni entry at Recption as from September 2021. After three years there will be increase of pupil numbers of at least 45. Public Benefit The Trustees are aware of the Guidance issued by tlLe Charity Con]mission undcr the Charities Act 2011 in relation to Public Benefit and are mIndful of their obligations to have regard thereto. The Trustecs are confident the Charity's activities are in pursuit of its objects and are deltvering publie benefit. This is achieved by th¢ provision of education for the chorister5 and school bursaries to fund the edCatiOn of non-chorister pupils whose parents would not nornllY be able to fvnd the required fees. The boatding fees of choristers ate partly funded by the St Paul's Cathedral Chorister Trust. Choristers are offered place based on their singing ability and personal attributes only. The Cathedral Church of St Paul pays the Tuition fees for all Choristers. During 2020. six day-pupils received support for part or all of their fee$ from the Bursary Fund and 15 choristers received support from the Chorister Trnst (see notes I l and 14 to the financial statements) for their Boarding Fees. As a result of the disruption to pupils education caused by the Cgvid 19 lockdown of schools, Governors decided to hold fee levels at 2019120 ras for the academic year 2020121. This was in addition to a IOQ/( discoiint offered agaiiL%t the fees for the summer terni 2020. Governors continue to encourage the school to take every opporDJnaty to diversify their activities in the area of education, particularly in regard to the provision of musical opportunity to a$ wid¢ a public as possible.
ST PAUL'S CATHEDRAL CHOIR SCHOOL TRUSTEES, REPORT FOR THEYEAR ENDED 31 DECEMBER 2020 TRUSTEES. REPORT (continued) The Cathedral Choir support5 musical education and partnetship work benefitting state schools across the Diocese of London. ID the past year, this has included ils 'SIng with St Paul's. ptogramme, which has benefitted keyworker children, and those home-schooling. the Hackney Children'5 arld Senior Choirs (with support from the Mayor of London),. and digital singing a5sernblies featuring the choristers, shared with schools acioss the UK. Public Benefjt {eontinued} M¢mb¢rs of the rnusic staff seek to share the experience of singing at St Paul's with children in more li1 30 schools per year, su¢¢¢ssfully reaching and recruiting choristers from diverse and deprived ba¢k8rounds. In additiofy the outreach work actively support the CPD of music teacher5 Ln partner schools. During 2020, many fvndraising actlVLtie5 were lirnited in scope however the school s¢hool still raised money for Jeans for G¢nes, Childrell in need, Christma5 JuTnper Day- Save the Children. Christmas Service- Great Orniond Street Hospitsl, Comic Relief, RBL Poppy Appeal, World Book Day, and now sponsor a guide dog puppy. The Schoolcontinues to develop its netwtsrk of PriTnaryeducators in the state maintainedsector (primary) to shareprofessional development, such as throll collaborating with subject cluster grotsps. forexample in modern foreign languages. In additio the Head is a memberof the Cityof London's Head Teachers, Forum. a group of head teachers from across the City of London (both tnaintained and independent), who to share infotmation, best pra¢ti¢e ond, where possible, resources. With the appointment of a new Head of Sport we are now actively planning for widening our sports participation to include maintained prinry schools withi'n our fixtures and tournaments. The School continues its partnership with th¢ Royal Coll¢ge of Music whereby undergraduate musicians experierlce rnusic teaching in a school setting. With the new building work now COTnplete, the School aims to set up twilight tea¢her training programmes in ICT and Music for non-specialist teacher5 from the tnaintained sector. FINANCIAL REVIEW AND RESULTS FOR THE YEAR The school generated net LllcoTne duiing the year of £1.598.328 {2019- £1,668,136) representing 30.52 / 12019.. 30.80/) of total revenues. Howeverthi5 included £808.721 ofrestric¢ed income of whi¢h £805,903 was donations for the School Building project. Pupil number5 averaged 254 Ln 2020 {2019'. 257). ensuring the s¢hool made an unrestricted operating surplus in exce55 of £718.058120I9.. £541,444) beillg 16.2/ (2019". 12.1°10) of total unrestricted revenues. The sUlUS was achieved after char8ing depreciation for the year of £60,655 {2019'. £60.147). Capital expenditure f(Trr 2020 was split between £4,446.986 for the school development project. £9,654 for ICT, and for fjxtures and fittings £28,944. In the year £70.581 (2019.. £73,562} has been set aside as Designated Funds. These have been designated by the Governors for the putpose of awarding butsaries to day pupils. The Sum is made up of in¢ome from the School Capital Fund (£20,977) and 6% of the previous year's Unrestricted Fund surplus (£72.0601. resulting in a sutplus to be carried forward sn the Bursary Fund of £1,479. In accordance with the conditions of the Instrument of Delegation and Financial Memoranduln adopted by the school, the school'5 Lnitlal unrestricted reserves were fixed at £400.000 al J l December 2005 and a reserves policy was introduced based on unrestricted reserves being a minirnum of 20/0 of annual fees. Th¢ S¢h(K)I ha5 continued to secure an annual operating surplus since 2005, taking unrestricted reserves 10 £6.461,19512019.. £4.937.234). Over the last five year5 the Trustees have continued to increase urestricted reserves to enable the school to finance a significant portion of the planned h0o1 development project. Thi5 has enabled the School to contribute over £4m to the financing of the project. The other part of the fundLn8 for the Building Project came from a loan from St Paul's Cathedral of £2.5 tnillion taken out in the name of the Cathedral from Lloyds Banking Group and repayable by 2033. The School ha5 agreed to make back to back payments to the Cathedal to cover payments of interest aTJd repayments of capitsl to Lloyds bank. Under the same financial agreeTAent the Cathedral transferred to the school the "School Capital Fund" and the School Scholarstll"ps, Prizes and Bursarie5 Fund (known as the Prizes Fund) on 31 December 2005 amounting to £615,000. At th¢ end of 2020 these endowment fund5 stood at £1,136,476 (2019.. £1,063.J53) and the accumulated restrictcd income arising frorn the latter endowment stood at £37,068 (2019.. £35,825) held as a cash balance.
ST PAUL'S CATHEDRALCHOIRSCHOOL TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER Z020 TRUSTEES, REPORT Icontlnued) Restives Policy Tht Trustees ivill seek to maintsin a minimuTn level of unrestricted reserves equivalent lo 25 /0 of one year s running costs, defiiied as e.Kpendiiure on charitable a¢iivities. At 3 1 Decemt¢r 2020. unrestrictcd reserves are £6,461,19i or 174.2VD of th¢ 2020 school e¥penditur¢ on charitable aciivitl¢s1£3,709,1501 {2019..126Yo of running co515 of £i.916,1801. Governors have agreed thèi some of these reserves can be used to finance th¢ forthcoming Sch[ building proje¢i. As at the end of 2020 £4.000.(K) has been committed . Senior manigement remunerAtlon policy The remuneratEOll of the Headmaster 2nd Bursar is set by the Governors. FUNDRAISING POLICY The School fundraises primarily from institutions, trusts and foundations, together iyith occasional ev¢nt-based fundraising and individual donaiiot)s. The cliarity does not ¢ngage in cold-calling or street-based fundraising or use thiyd party fundraiser5. The school has not reccived any coniplaints in ihe year in eonn¢¢tion with the PTopriety of its fundraising. The School takes all reasonable steps to treat donors fairly. enabling them to make informed decisions about any donation. This includes taking into accouni the needs of any potential donor wlio may be in vulnerable circutnstances or require additional ¢aTe and SUPFQrt to make an inforTned deciss0n. The charity lias fundraising cost5 of les5 than £IOQ.000,' hence it ha5 not been asked 10 register ivith the Fundraising RegulatOT and. in vieiv of the nature of the fundraising undertak¢n, the charity ha5 not to dale regJ'$*red voluntarily. FUTURE PLANS In December 2016 ihe School was sranted planning permission to build a new Boarding Hous< eypand the dining area and create extra classrooms by rehousing th¢ resident staff in the existing Boarding House. This work comrnenced in July 2019 and the final sectional completion ivas 5, Mar¢h 2021. This Ivill enable the school to e.xpand ils pre prep department and to provide some additional specialist classrwms and secure boarding a¢comTnodation of the required standard for many years 10 ¢OTne. It will also ¢n2ble us to continue our key objective of educaiing OUT pupils to th¢ same high Siandards, or higher, as in previous years. The Trustees remain confident that St Paul's Cathedral Schwl will be a going concern for the next 12 months and beyond. There are long wailing li5t5 for the next four years for both the 4+ and 7+ entry point5. and th¢ school has introduced an I l+ scholarship programme which is attracttng a small number of applicants hitliErto rK)I served by ihe school. Once the Pre•Prep has groivn to two form entry. the 7+ entry point ivill offer feii'er places, however. it is anticipated that thTS ivill retnain an important and attractive entry point for some piipils. Budgeis and ftsrec85ts have been updated to reflect the itnpact of the COVID 19 viru515ee post balance sheet events note below}. However, the Governors do recognise greater uncertainly as to pupil nurnbeT5 than for some lime. reflecting the change in ii'orking praclicc5 in central London as a result of the pandemic. Having completed the physical development of the estate, the Senior Leadership and the Governing body are iiorking together to define a nV 5 year strate8ic plan. Pari of that plan is to establish the School as a Foundation, with its own legal identity. while remaining an integral and vital pan of the Cathedral's mission. Note 17 Post Balance Sheet Events gives rnore detail of the progress with this exercise. IDvestment Powers And Tntstees, Auihority The s¢hool is ivholly owned by the Cathedral Church of St Paul in London. It is ther¢fore subject to the Cathedrals. Mea5UTe 1999 in addiiion to charity law. Trustees may inY¢st funds in any of the folloivin& Land Fund5 administered for the Central Board of Finance of the Church of England
ST PAUL'S CATHEDRALCTrIOIR SCHOOL TRVSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER2020 TRU.8TEES' RIPORT Itontinuedl Investmeijt Powors and Truslee5' Autljority Itontinued) Iiivestinenis in M,hi¢li Irusiee5 Ina). ini'est under the general poivers of investment in the Tru5tee5 Act 2000 The improvernent of developmeni or properts". belonging to the Cathedral The Ini'es¢ineiii Policy for School funds must meei Ihe requirements of the CBF Cliurch of England Ethical Polic),. The Trustees reoularly consider the perforinance bv its Investment manager and of the investments held. The TrLisiees consider. supwrted bv an independent I'evieiv, that perforinance is satisfa¢tor}.
ST PAUL'S CATHEDRAL CHOIR SCHOOL TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible forprepariug the Trustees, report and the fiiydncial statements in accordance with applicable law and the United Kingdom Accounting Standards {United Kingdom Geneially Aw¢pt¢d Accounting Practice). The Trttee$ are responsible for preporing the Tntees. Annual Report and the flnancial statements in accordance with the applicable law and United Kingdorn Accounting Standards (United Kingdom Generally Accepted Accounting Pracli¢e), including FRS102"The Fitthncial Reporting Stsndard applicable in the UK and Republic of Ireland" The law applicable io charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a ttue and fair view of the state of affairs of the eharity and of the incoming resources and application of iesources of the charity for that perrod. In preparing these fmaneial statements, the twstees are required to.. - select suitable accounttng policies and then opply them consistently - observe the methods alld principle$ ID the Charities SOI - make judgments and estimates that are reasonable and prndent - state whether appltcable accounting standards have been followed - prepare the fll)ancial statements on the going eoncernbasis unless it is itydppropriate to presume that the charity will continue in business. The trnstees are responsible for keepll proper accounting records that disclose witb reastsDable accurd¢y at any time the financial position of the charity and ellable thern to ensure that the financial statements comply with th¢ Charities Aci 2011 and regulations made thereunder. They are also responsible for safeguarding the assets of the charity and hence for takll r¢a50nable steps for the prevention and detection of fraud and other I¢gularitIeS. The trustees are responsible for the maintenance and integrity of tbe d]arityand financ1 infornydtion includ¢d onthe charity's website. Lcgjslatron in the United Kingdom governing the preparation and dissemination of financial sta*rnents may differ from legislation in other jurisdictions. Approved by the Board of Trustec$ on Monday 20th October 2021 and signed ¢)n its beholf by: The Very Rev'd Dr David Ison Trustee and chairnn of Governors io
ST PAUL'S CATHEDRAL CHOIR SCHOOL INDEPENDENT AUDITORS, REPORT FOR THE YEAR ENDED 31 DECEMBER 21120 OpiDiotL We have audited the fina{al stsments of St Paul's Cathedral Choir School for the year ended 31 December 2020, which comprise the statement of financial activities. the balance sheet, the cash flow statement and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdoln Accounting Standards, including Financial Reporting Standard 102 The Financial ReportinE Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepfed Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 DeeeTnber 2020 and of its net rnovement in nds for the year then ended", haye been properly prepared in accordanee with United Kingdom Generally Accepted Accounting Prdctice,. and haye been prepared in aceordanee with the requirements of the Charities Act 2011. Basis for opinion We have been appointed as auditor under section 144 of the Charities Act 2011 And report in 2ccordAnee with the Act and relevant regulations tnade or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK} (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the f]nancial statements section of our rep(Trrt. We are independent of the charity in accordance with the ethical requiiernents that are relevant to our audit of the financial statements in the UK, including the FRC'5 Ethical Standard, and we have fi]Ifilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evsdence we have obtained is sufficient and appropria to provide a basis for our opinion. Conclusions relatSng to going eoneern In auditing the financial statements, we have concluded that the Ttustees. use of the going concern basis of accounting in the preparation of the fllmncial statements is appropriate. Based On the work we have perfornied. we have not identified any material ullcertainties relating io events or conditions that, individuallyor¢olleciively. may cast signiflcani doubt on the charity's ability to Continue as a going coneern ft>ra period of at least twelve months from when the financial staments are authorised for issue. Our responsibilities and the responsibilities of the Tntsiees with respect to going collcem are described in the relevant sections of this report. Other information The Trustees are responsible for the other infornmtion. The other inforniation comprises the infomation included in the Trustees. Annual Report. Our opinion on (he fmancial statements does not cover the other information and, exeept to the extent otherwise explicitly ststed in our repo we do not express any form of assurance conclusion ihereon. In conrtection with our audii of ihe financial ststements. our responsibility is to read the other inforniaiion And, in doing so, eonsider whether the other inforn)arion is materially inconsisteni with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially mLSStated. If we identify such material inconsistencies or apparent material rnisstatements, we are requlred 10 detemiine whether there is a material misstatement in the financial stateentS or a material Ints5tatement of the other infornmtion. If. based tsn the work we have p¢rfornied, we conclude that there is a material isstatement of this other Infornll0n. we are required to report tha( fact. We have nothing to report th this regard. Matters on whieh we are required to report by exception We have nothing to report in respect of the following [naL[S in relation to which the Charities (Accounts and Reports) Regulation5 2008 reqwre us to report to you if, in tsur opinion.. adequate accounting records have not been kept by the charity. or sufficieni accounting records have noi been kepi., or the charity financial siatements ate not in agreement with the accounting records and retuTns' or we have not received all the infonnatitsn atld explanations we require for our audit.
ST PAUL'S CATHEDRAL CHOIR SCHOOL INDEPENDENT AUDITORS, REPORT FOR THE YEAR ENDED 31 DECEMBER 2(120 Responsibllities of Trustee for the financial statements As explained more fully in the Trnstee's responsibilities statement set out on page 10, the Trust¢¢s are responsible for the preparation of the financial statements and for being satisfied that they give a ttue and fair view, and for such internal control as the Trustee detern]ine is necessary to enable the prepardtion of financial statements that ar¢ free from Illa[la1 mi55tatement, whether due to fraud or error. In preparing the financial statements, the Tntstees are responsible for assessing the charity's ability to continu¢ a5 a going ¢oncem, disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either iniend to liquidate the charity or to cease operatioDS, or have no realistic alternative but to do so. Auditor's responsibllities for the audit of the fin8nci&I $tktetllents Our objectives are to obtain reasonable assurance about whether the fllvdncial statements as a whole are free from material rniSStatemenL whether due to fraud or error, and tt) issue an auditor's report that includes our opinion. Re&sonable assurance is a high level of assurance but is not a guarantee that an audit Conducted in accordance with ISAS {UK) will always detect a material misstatement when it exists. Misstateinents can arise [rts fraud or error and are wnsidered material if, individually or in the agegate, they could reasonably be expected to influence the economic de¢ision5 of users taken on the basis of these fjnancial statements. Irregularities. including frauiL are instsnces of noll-compliance with laws and regulations. W¢ de5ignprocedLwes in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities, iThcluding fraud. The eXrtt to whieh our procedures are Capable of detecting irregularities, including fraud is detailed below: Based on our understsnding of the charity and the envirollrnent ift which it operates, we identified that the priucipal risks of non-compliance with laws and regulations related to regtsteted charities and indep¢nd¢nt scbools, aud we Considered the extent io which non-compliance might have a material effect on the financial statements. We also ctsnsidered those laws and regulations that have a direct impact on tILe preparation of the fmancial statements such a5 tbe Charities Act 201 l and other factors such as taxation. We evaluated management's incentives attd opportill)iiies for fraudulent manipulation tsf the fillancial statements (including the risk of override of control$) and detennined that the principal risks were related to rnauuai accounting joumals. Audit procedures perfornied by the engagernent team included.. Discussions with managemellt including consideration of known or suspected instanGes of non-compliance witb laws and regulation and fraud- Evaluating management'5 Controls designed to prevent and detect irregularities- and Identifying and testing journals. in particular journal entries posted with unusual a¢wun¢ combinatiots, postings by unusual users or with unusual descriptions. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. iirivii,.frL.oi" -u16aiiditoi'.%re oii%ibililies. Thi5 desGriPtion fom)s part of our auditor's report. Use of our report This report is rnade solely to the Charity's Trnstees, as a body, in accordance with section 144 of the Charities Act 20112nd regulations rnade under section 154 of that Act. Our audit work has been undertaken so thai we rnight stAte to the charitys Trustees those matters we are tequired to state to them in an Auditols report and for no other puose. To the fullest extent pennitted by law, we do TJOt accept or assume responsibility to anyone other than the charity's Truste¢ a8 a body for our audit work, for this reporL or for the opinions we have fornied. LLe Haysmacint)rye LLP Statutory Auditor Date= 25 October 2021 10 Queen Stre¢t Place London EC4R IAG haysma¢intyre is eligible tt> act as an auditor in tem)s of section 1212 of the Cornpanies Act 2006 12
ST PAUL'S CATHEDRAL CHOIR SCHOOL STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR EF4DED 31 DECEMBER 2020 Total 2020 Total 2019 Unrestricted Restricted Endowment Note Income from: Donations Invesiments 27,601 33,015 805,903 2,818 833,504 35.833 957.237 43,772 Chayiiable activitEe.s'. School fees Other ancillary income 2a 2b 4,060,303 291,556 4,060,303 291,556 4,075.292 326.584 Other trading 20 14,733 14,733 13,562 Total incotne 4,427,208 808,721 5,235,929 5,416,447 Expenditure on". Charirable activities {3.709,150) (1,5751 13,710,725) (3,918,007) Total Exp¢nditure {3,709,150) 11,575) 13,710,725) (3,918,007) Net income excluding investments gains 718.058 807.146 1.525,204 1,498,440 Net gains on investments 73,124 73,124 169,696 Net income 718.058 807,146 73,124 1,598,328 1,668,136 Tran$f¢r5 between funds 10 805,903 (805,9031 Net [Trov¢ent in funds 1,523.961 1,243 73,124 1,598,328 1,668,136 Reeonciliglion of funds Total fvnds broughi forward 10-12 4,937,234 35.825 1,063,353 6,036,412 4,368,276 Total funds carried forward 6,461.195 37.068 1,136,477 7,634,740 6,036,412 A]1 amounts derive from continuing activities. Ail gain5 and I0eS recognised in the year are included rn the Statement of Financial Activities. Notes I to 14 form part of these finala1 statements. 13
ST PAUL?S CATHEDRAL CHOIR SCHOOL BALANCE SHEET AS AT 31 DECEMBER 2020 Total 2020 Total 2019 Iyote FIXED ASSETS Investments Tangible assets 1,136,476 7,864.900 1,063,353 3,439,971 TOTAL FIXED ASSETS 9,001.376 4,503,324 CURRENT ASSETS Debtors Cash at bank and in hand 89.510 1,191.409 121.519 2,679,595 TOTAL CURRENT ASSETS 1,280,919 2,801,114 Creditors: amounts falling due one year {708J83) {1,268,0261 NET CtJRRENT ASSETS 572,536 1,533,088 Creditors falling due after One year (1,939,172) TOAL NET ASSETS 7,634,740 6,036,412 Fuf4DS Unrestrtcted fimds Restricted fimds Endowment fijnds 36.461 195 4.937,234 37,068 35.825 4W1951.136 477 494P2341063 353 10 10 TOTAL FUNDS 7,634,740 6,036.412 Notes I to 14 forni part of these financial Statemen These financial statements were approved and authorised for issue by the Board of Trusttts on 20 October 2021 Signed on behalf of the Board of Trnstees.. The Very Rev'd Dr David Ison Trustee 14
ST PAUL'S CATHEDRAL CHOIR SCHOOL NOTES TO THE FINANCIAL STATEMEf4TS FOR THE YEAR ENDED 31 DECEMBER 2020 I. ACCOUNTING POLICIES AccoulltiThg Basis The financial statements are prepared under the historical cost convention as modified by the revoluation of investment assets to market value and in compliance with Accounting and Reporting by Charities.. Statemeni of Recommended Practice applicable to charities pieparing their f]nancial staiements in accordance with the Financial Reporting Siandard 102,'The Financial Reporting Stalldard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Charities Act 2011. The financial statements are prepared in sterling which is the functional currency of the Charity. Monetrary amounts in these financial statements are tounded to the nearest pound. Th¢ Charity is a Public Benefit Entiiy as defined by FRS IO2. Notwithstanding the irnpact of the Covid-19 pandemic the lneS consider that there are no material uncenainities affe¢ting the Chatity's ability to continue as a going conem for at least twelve months form the date of approval of the accounts. Fee5 and Simi12r Income Fees receivable for the provision of edu¢auon and charges for services and use of premises ar¢ a¢count¢d for in th¢ period when the school is entitled to receive them. chey canbe measured and the receipt is probable. These ar¢ included in income frorn charitable activities. Fees receivable are sthted after deducting allowances. scholarships and oth¢r r¢missions granted by the school frorn its uIirestricted fimds. but include contributions received from Restricted Funds for hOlarshIps, bursaries and other gtartts. Donatio[ ate also accounted for on a receivable basis although in practice the criteria of entitlement, measurement and probability ale frequently only met ai the point of receipt. Expenditure Expendituie is accounted for on an accruals basts. VAT is included with the it¢m of expense to which it relates. Appioxifflately 650/0 of support costs are spent in di1 support of teaching activity and tbe remainin8 35 /0 on welfare and prernises support. Depreciation on the school minibus is included in support C051s. Teaching Materials Supplies of games equipmenL books, stationery and sundry materials are written off to the Statement of Financial Affairs as soon as the expenditure on pro¢uring thern is incurred. Depreeiation Depreciation of other assets is provided at rates calculated to lte off the exces5 of cost over estimated residual amount evenly ovei the estimated use1 economic lives of each Class of asseL subje¢t to annual revkew. These lates are currently as follows.. Buildings Lmprovemenis and extensions Furniture and equipment 10- 20 year5 3 - 10 years Pension Sehemes The School contsibutes to the Teachers, Pension Scheme at rates s¢t by the Scheme Actuary and advised to the School by the SchetThe Administrator. The Scheme is a mulLi-¢mployer pension scheme and it is not possible lo identify the assets and liabilities of the Scheme which are attribulable to the Charity. In accordance with FRS102 the Scheme is accounted for as a defllkd contribution scheme, whilst it is a defined benefit scheme. Contributions are accounted for as a defined Contributlgn schetne and contributioTJS are accounted for when advised as due by the Scheme Administrator. The St Paul's Cathedral Final Salary Pension Scheme ceased taking further contributions iTh May 2007 and under the aang¢n]ent made with the Cathedral the School is not required to make fvrther contributions. The School also contributes to a defined contribution scheme with AVIVA The sch¢m¢ is availabl¢ ¢0 all ¢mployees. The assets of the scheme are held separately in independently adminisiered fvnds. 15
ST PAUL'S CATHEDRAL CHOIR SCHOOL NOTES TO THE FINAr4cL STATEMENTS (colltinueil) FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTif4G POLICIES {¢ontillued) Pension scheres {continued} For defined contribution schemes the amount charged to the Statement of Fitwi¢ial Activities in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either a¢¢nlS or prepayrnents in the balance sheet. Taxation The School 15 a registered charity and a5 such is exempt from iaxatloll OD its in¢ome and gains to the extent that they are applied to its charEtabl¢ purposes. Cashfiow Statement In accordance with th¢ provisions of FRS102 section 1.12 a cash flow statement has not been prepared as the S¢hool's cash flows are includtd in the consolidated fjnancial Statements of St Paul's Cathedral. Investments All investments kre revalued atmually at open Jnarket value. Any utjrealised change in value since the date of acquisition or the last balance shect date is credited or Charged to the Statement of Fitmncial Activities. Any realised gain or1085 (calculated as net sales proceeds less value at the last balance sheet date, or Cosi if acquired during the yeat) is also ¢r¢dited or charged to the Ststern¢nt of Financial Activities. Cash at Bank and iD Hand Cash at Bank aTJd in Hand in¢ludes fiulds held on short term deposits. All the llds on Deposit are for less than 3 months and allow immediate acce55. Funds Funds are classified between restricted and unrestricted in accordance with the legal constraints ¢)n their use, and the consequent degree of flexibility which the Twstees have on using the income That gave rise to the fijnds. Restricted Funds These are fvnds subject to specific conditions or trnsts, whEch are binding on the Trnstees. The restriction may be o in¢om¢ or capital or both. Unrestricted Funds These are all funds other than endollent and restricted lld8 and include fimds designated for a specific purpose by the Tru$tee$. Desigttated Funds These are fvnds allocated to the Bursary Fund and are made up of Income from the Capital fund plus 610 of the prior year's Unrestricted surplus and fimd from the current year sury)lus sufflcient to ensure the filnd is not in deficit. Critic#1 xccounting judgments and source5 of estimation uneertainty In the application of the School's accounting policies, which are described in note I, the Trustees are required to make judgernents. estimates and assurnptions about the carrying atnounts of asscts and liabilities that are not readily apparent from other sources. The estimate$ and associated assumptions are based on historical experience and other factors that ale considered to be relevant. Actual results may differ from these estinte. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period ill which th¢ estimate is revised if the revision affects Only that period, or in the period of the revision and fvture peiiods i(the revision affttts both Current 8nd future periods. The Trustees do not consider th¢r¢ are any Critical judgements or sources of estimation uncertainty requiring disclosure. 16
ST PAUL'S CATHEDRAL CHOIR SCHOOL NOTES TO THE FINANCIAL STATEMENTS {continued) FOR THE YEAR ENDED 31 DECEMBER 2020 2a. FEE INCOME 2020 Total 2019 Total Gr05s school fees Le55'. discounts Le55'. total butsaries and prizes 4,274,489 {143,605) (70,58I) 4,168,438 {19,584) (73,562) Net fees reeelyable 4,060,303 4,075,292 Add.. bursaries and prizes fimded by restricted fvnds Total 4,060,303 4,075,292 2b. OTHER ANCILLARY CHARrrABLE INCOME Extras Registration fees School trips Other 258.238 18,501 7,532 7,285 268.084 18,200 21,386 18,914 Total 291,556 326,584 2e. OTHER TRADING Music and uniforn] sales Other 7,383 7,350 8,642 4,920 Total 14,733 13,562 INVESTMENT INCOME Investment Income from Capital Fund Investlnent Income from Scholarship and Prizes Fund Interest on Cash Deposits 28,977 2,859 3,997 28,133 2,776 12,863 Total 35,833 43,772 EXPENDITURE Charitable expenditure includes: tkpieciation Auditors, Remuneration 60.654 9,600 60,147 10,320 Total Staff Costs comprised: Wages and Salaries Social Secutity Costs Other Pension Costs 2,216,997 213,911 326,806 2,216,125 205,123 282,375 Total 2,757,714 2,703,623 17
ST PAUL'S CATHEDRAL CHOIR SCHOOL NOTES TO THE FINANCIAL STATEMEf+lTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020 EXPENDITURE (coDtiDued) 2020 2019 The average nutnber of employees Ill the y¢ar: Teachin8 Muslc Teachiug assistant Domestic Athllinistration 33 19 12 33 20 12 Total 77 78 The nUber of higher paid employees 2020 2019 £60,000 £70,(0 £70,0(10 - £80,000 £80,000 - £90,000 £90,000 - £100,000 Aggregate employee benefits of th¢ Senior ManagementTeam IKeyManagementPersoDnel) are: £482,891 £406,118 The Governois received no remuneration, reimbur$¢d expenses or other benefits for the wrrent or previous ycar$. ANALYSIS OF TOTAL EXPENDITURE 2020 Staff Costs Totsl Other Depreciation Edll¢ation: Tea¢hitJg Welfare Premtses Support ¢osts Governance costs 2,261,945 93,671 156,673 255,876 131.951 261.134 303,603 136.839 45.378 30,973 2,424,869 354,805 490,138 392.715 45.378 29,862 Total 2,768,165 878.905 60,832 3,707,902 Staff Costs Total 2019 Other Depreciation Education- Teachtng Welfare Premises Support costs Governance Gosts 2212,802 96,504 141,167 258247 174.665 328,692 407,071 192,937 45,775 28,773 2,416,240 425,196 579,612 451,184 45,775 31,374 2,708,720 1.149,140 60.147 3,918,007 Total 18
ST PAUL'S CATHEDRAL CHOIR SCHOOL NOTES TO THE FINANCIAL STATEtVlENTS (eontinued) FOR THE TrIAR ENDED 31 DECEMBER 2020 ANALYSIS OF EXPENDITURE leontinued) Support costs include the costs of the five administrative staff of the school. Other support costs relate to expeTJses involved in the support of Teaching, Welfare and Premise5. ¥VESTMENTS The Investment fvnds (Capital ar Scholarships Funds) are under the Tnatvdgement of CCLA Investment Management Ltd and consist mainly of quoted equities. There were no addltitsns and disposal in the year 2020 CapitAI Fund Scholarship & prizes fund Total Marker v?lue at l Janauary 2020 Revaluation in the year 967,863 66,557 95.490 6,566 1,063,353 73,124 Market Value at 31 D¢¢emb¢r 2020 1,034,420 102,056 1.136,476 Split of investmeRtS Investment assets in the UK 31 December 2021 Investment &ssets outside the UK 31 December 2021 364.809 771.667 Total 1,136,476 Historical cost of investments 601.940 2019 CAPital Fund ScholArship & prizes fund Total Market value at l Janauary 2020 Revaluation in the year 813,408 154,555 80.249 15.241 893.657 169.696 Market Value at 31 December 2020 967.863 95,490 1,063.363 Split of investments Inve.stment assets in the UK 31 December 2021 Inve.stment assets outside the UK 31 Decernber 202I 455.211 608.142 Total 1,06J,353 Historical cost of instmentS 601.490 As at the lime of signing the accounts the value of Investments was not materially different from ihe year end. No disposals or acquisiti¢)ns have been made since the year end. 19
ST PAUL?S CATHEDRAL CHOIR SCHOOL NOTES TO THE FINANCIAL STATEMENTS (eontlnued) FOR THE YEAR ENDED 31 DECEMBER 2019 TANGIBLE FIXED ASSETS Fixtures. rittings and equipment Building improvements 2019 Totals C05t or Valuation At l January 2020 Additions 4592.750 4,446,986 616,972 38.598 5,209,722 4,485,584 As 31 Decernber 2020 9,039.736 655.570 9.695,306 Depreciation At l January 2020 Charge for the year 1,230,212 29,682 539.539 30.973 1,769,751 60,655 At 31 Decembcr 2020 1259,894 570.512 1,830,406 Net Book Value At 31 December 2020 7,779,842 85,058 7,864,900 At 31 December 2019 3,362,538 77,433 3.439,971 The freeholds of the St Paul's Cathedral School and St Augustine's House, New Change, London EC4M 9AD are owned by the Corporation of the Cathcdral Church of St Paul in Lolldon. Accordingly they ore not shown on tbe SchcK>I's balance sheet. DEBTORS 2020 2019 Amounts falling due within one year School fees A¢crned Income Other Debtors {4,895) 84,246 10,159 11,546) 99,652 23,413 89,510 121,519 CREDITORS 2020 2019 Amounts falling due within one year Trade Creditors Accruals and Deferred Income Due to St Paul's Cathedral 151,554 454,155 102,674 164,879 375,640 727.508 708,383 1,268,026 Amounts falling due after one year Amounts owing to St Paul's Cathedral 1,939,172 20
ST PAUL'S CATHEDRAL CHOIR SCHOOL NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2019 CREDITORS {eontinued) In September 2020, St Paul's Cathedral entered into a £2.5rn loan facility with Lloyds bank and subsequently loaned the School an equivalent loan on the same repayment tenn$ to fund the completion of the building proje¢i. Amounts were dramn from St Paul's Cathedral in late September 2020, the fv11 £2.5m was drdwn down from the Cathedral by end of March 2021. The loan becoine% repayable in late 2021 and will be Tepaid to the Cathedral over twelve years at an interest rate of 3.23•/0 above the Bank of England base rate. 10. ENDOWMENT AND RESTRICTED FUNDS Endowment and restricted funds consist of the Capital fvnd and Scholarship and Prize nd. All rtdS are held as either cash or investtnentg under the matvdgernent of CCLA Investment Management Ltd and consist mainly of quoted eqllities. Endowment funds- 2020 Capital Fund Scholarship & prizes fund Total Fund at L January Revaluation in the year 967,863 66,557 95,490 6,566 1,063.353 73.124 Fund at 31 December 1,034,420 102.056 1.136.476 Endowtnent funds- 2019 Capitttl Schol&rship Fund & prizes fund Total Fund at l January Revaluation in the year 813,408 154,455 80249 15,241 893,657 169,696 Fund at 31 December 967,863 95,490 1063)53 Restrieted fund (held as cash)-2020 Total Fund at l January Net income for the year 35,825 949 Fund at 31 December 37,068 Re$trieted fund (held as casb)-2019 Tot81 Fund at l January Net incorne for the year 34,876 949 Fund at 31 D¢cember J5.825 The balance on restrieted reserve$ relates tts the School Scholarship and Prizes Fund. 21
ST PAUL'S CATHEDRAL CHOIR SCHOOL Tr40TES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2019 School Capital Fund Income generated by the Capital Fund may be drawn down by and Uiilised by the Governors for specific purposes for the benefit of the school and is therefore recognised in unrestricted funds. Further details are given in notes 10 and 11. 500/0 of the Capital of the Fund is available to be borrowed by the Governing Body for Splfi¢ purposes for the benefit of the School. School Scholarship and Prizes Fund The income from the Scholarships, Prizes and Bursaries Fund will be applied by the Governing B¢)dy to awardprizes and scholarships at their discretion, and is therefore recognised in unrestticted fid5. No capital was transferred to Unrestricted Reserves the year. Transfers The trafer of £805,903 out of restricied fullds into unre$trECted fvnds relates to the res(rxciions in relatLOIi to donations towards the building project being satisified. 11. UNRESTRICTED FUNDS: MOVEMENTS IN THE YEAR 2020 General DesignAted Desi¥Thated Income from School Capital Bursary Fund Total At l January Sutplus l (deficit) for the year Designation the year (note 12) Transfer frojn restricted funds 4,937,234 759,662 {43,083) 805,903 4,937,234 718,058 28,977 (28.977) {70.581) 72.060 805,903 At 31 December 6,459,716 1.479 6,461,195 UNRESTRICTED FUNDS.. MOVEMENTS THE YEAR 2019 General Desigll#ted Designated Ineome from School CAPjtal Bursary Fund Total At l January sl)Ill5 l {deficit) for the year Designation in rhe year {note 12) Further transfer required Trdttsfer frorn restricted fvnds 3,439.743 586,873 (32,891) (12.538) 956,047 3,439,743 541,444 28,133 {28,133) (73.562) 61,024 12,538 956,047 At 31 D¢¢¢mber 4.937,234 4,937,234 22
ST PAUL'S CATHEDRAL CHOIR SCHOOL NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR Ef4DED 31 DECEMBER 2019 12. DESIGNATED FUNDS Income from School Capital Fund In 2009. Governors, with the agreement of the Trustees. voted to transfer SOTne or all of the income from the Capital Fund each year to the Bursary Fund in order to build this up for future use, tkn"s arrangement has continued and remaitjs unchanged. Hence in 2020 all of the income was transferred to the bursary ndS as shown in note I l. School Bursary Fund Sirtce 2010 the Bursary Fund has been a Designated Fund. The Fund assists day children parenLs who find themselves in financial difficulty during their child's stsy in the school and it is hoped to extend this assistance to new families in the ture. 60/0 of each year's Unrestricted Fund sUlUS is put aside for this purpose. In 2020 the sum was £43,083 (6 /0 of the 2020 unrestrictedsujplus of £718.058) plus the income from the Capital Fund {£28,977) which is transfeThed to the Bursary Fund mentioned in Note 10 above mah.ng £72,060. A surplus of £1.479 was retained in the Bursary nd and carried fonvard. The Governors have agreed that Finance and General Purposes Committee will be responsible forover5eeing the award of grants. 13. ULTIMATE PARENT The Charity's controlling entity is the Coryoration of the Cathedral Church of St Paul in London comrnonly known as St Paul's Cathedral. The results of the School are consolsdated into the consolidated financsal statements of St Paul's Cathedral. Copies of the Cathedral's financial sthtements may be obtained fro The Chapter House, St Paul's urchyard, London EC4M 8AD. As a wholly-owned operarion within the en(iiyof Si Paul's Cathedral, the charity has taken advantage of the exernption in FRS102 seciion 33 Related Party Disclosure not co disclose transactions with the Cathedral. 14. STAFF PENSIONS Teachers The School panicipates in the Teachers. Pension Schetne (England and Wale$} {"the TPS") for its t¢3¢hing staff. The pension charge for the year includes contributions payable to the TPS of £273,465 {2019.. £225,609) and at the year- end £nil (2019.. £nil) was accrued In respect of contributions to "$ scheme. The TPS is an unfvnded multi-employer defined benefits pension scheme governed by the Teachers, Pension Schetne Regulations 2014. MeTnbers contribute on a'pay as you go" basis with ¢ontributions from members and the employer being credited to the Exchequer. Retkrernent and other pension benefits are paid by public funds provided by Parliament. The ernployer contribution raie is set by the Secretary tsf State following Scheme valuatLon5 undertaken by the Govemment A¢ary'S Department. The most recent a¢¢L]arial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, Confed that the employer contribution rate for the TPS would increase from 16.40/0 to 23.60/0 from I September 2019. Employers are also required to pay a scheme administration levy of 0.080/0 giving a total ernployer contribution rate of 23.68%. 23
ST PAUL'S CATHEDRAL CHOIR SCHOOL NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2019 Teachers (continued) The 31 March 2016 Valuation Report was prepared in accordance wtth the benefit8 $¢t out in the scheme regulations and under the approach spe¢ifIed in the Directions, as they applied at 5 March 2019. However. the assumptions were considered and set by the Department for Educatioll prior to the rnling in the 'M¢CloudlSargeant case,. This case has required thc courts to Consider cases regarding the implementation of the 2015 r¢forn]s to Public Service P¢nsions including th¢ Teachers. Pensions. On 27 June 2019 the Supreme Court denied the goverillllent pem]ission to appeal the Court of Appeal's judgment that transltional provision5 Introduced to the iefomed pension schemes in 2015 gave rise to unlawful age discrimination. The governtnent Is respecting the Court's decision and has said it will engage thlly with th¢ Employmeni Tribunal as well as employer and member representatives to agre¢ how the discriminationg will be remedied. A consultation was launched by the govetnment on 16 July 2020, and closed to responses on I l O¢tober 2020. The TPS is Subject to a e05t cap mechanism which was put in place lo proieci taxpayers against unforeseen changes in scheme costs. The ChEef Secretary to the Treasury, having in 2018 atjnounced that there would be a review of ihis C05t cap mechanism. in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal's rulin8 in the M¢Cloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause wa5 lifted in July 2020 and the government Is preparing to ¢omplete the cost control element of the 2016 valuations, which is expected to be completed in 2021. Ill view of the above rnlings and decisions the assumption5 used in the 31 Match 2016 Actuarial Valuation may become inappropriate. In thi5 scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation. Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial itnpact or filre changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial Staellts. Other Stsff Defined Contrlbution Scheme: 43 non-teaching staff participate in the deflld Contribution seberne runby Aviva 2nd provided by St Paul'5 Cathedral foi kts staff.. The assets of the scheme are held in independently administered fiJnd$. The pension charge for 2020 includes contributions payable to the sChee of £53,341 (20I9= £51,404) Final Salary Penslon Scbeme: four nott-teaching staff participated in the St Paul's Cathedral Final Salary Pension Scheme wlll.ch closed to service accrual 15, May 2007. A¢cordllw to the terms of the InStruent of Delegation, all administration Costs of the Cothedial Pension Schemes will be borne by St Paul's CathedTal and a direct extract from Cathedral accounts for pensions reads: 'Although closed to service accrual, the retirement benefits for members of this Scheme are based on ¢mployees' final remuneration and the length of service to l May 2007. The pension cost is assessed in accordallce with the advice of anindependeni actuaryusing the projected unit method oo the basis ofanannual valuation and ctwged to the Staiement of FinanciAI Activtties as described below. The three-yearly actuarial valuation of the Scheme as at 30 September 2016 was ¢ompleted during 2017. The ndIrtg plan is for the Scheme to hold assets to the value of the benefits using the rnethodology as set out in the Scheme's StatemenÉ of Funding Principles. This valuation showed the Schetne had a target level of assets of £28.7 million. After tsking account of ats asseis of £26.0 rnillion, the Scheme had a deficit of £2.7 million which m¢ans its funding level was 91 /0 in Septeinber 2018. However, bythe time the valuation had been completed on 9 Novelltser 2017. the Trustee detemiined that the Scheme was expected to have a small SUluS owing to improvements ill financial markets and rther contributions paid by the Cathedral. A5 a result of the surplus in the Scheme. the Trustee determined that no rthercontribution8 would be needed from the Cathedral before 30 September2019 when the next three-year actuarial valuation Ès due. 24
ST PAUL?S CATHEDRAL CHOIR SCHOOL NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DEcELBER 2019 15. RELATED PARTY TRAL¥SACTIONS Tuition fees of £471,000 (2019.. £458.000) and mustc fees of £60.000 (2019- £58,0) were paid by St Paul's Cathedral to the sehool for the educAtion of the Chorisiers. The Cathedral paid a grants totslling £500,000 (2019.. £Nil) to finance the L£aming in Harniony project. The school paid rental income to the Cathedral of £125,000 (2019.. £122,000} During the year the St Paul's Cathedral Chorister Twst conttibuied £89.478 (2019.. £98.2J5) tOW8rds the Boarding fees of 17 {2019." 18) choristetE. The Governors made aggregate donations to the school of £550{2019£nil) 16. CApfrAL COMMITMENTS The school has a building contract with Borras Constrnction Ltd for the constrnction of a new boarding house, the refvrbishment of staff flats. school dining room and the creation of 3 new Classrooms. The Contract value is £5,693.678 plus VAT. The Gross Valuation at 2411212020 was £5,446.118 (£6,535,342 VAT) .At 27 May 2021 a final contract surn of £6,009.711 plus VAT was agreed . The final balance less agreed retentions of £99,532 plus VAT was settled in June 2021. There were no other capital commirmenis ai 31 December 2020. 17. POST BALANCE SHEET EVENTS The school rerned to operating under Governmeni COVID lockdown regulation5 in J&xuaFayIallua 21 but continued to provide on site support for rhe children of Key Workers and pupils from l year group at City of L£)ndon Girls School until 8, March 2021. The Govemors of the St Paul's Cathedral School and Chapter of the Cathedral have started discussions with the objective of restrn¢turing the governance affangements at the School. As part of this exercise the trade and assets will move frorn the School in its current strnciure as an unin¢otyorated charity to a new incorporated charity. Discussions are ongoing and the new changes are expected to take place within the next year. The School's results will continue to be consolidttted ill the Caihedral's financial statements. 25