2022-12-31-accounts - St Paul's Cathedral Choir School

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ST PAUL’S CATHEDRAL CHOIR SCHOOL

ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

Charity no. 312718

ST PAUL’S CATHEDRAL CHOIR SCHOOL

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Officers and professional advisers	2 - 3
Trustees’ report	4 - 9
Statement of trustees’ responsibilities statement	10
Independent auditor’s report	11 - 12
Statement of financial activities	13
Balance sheet	14
Notes to the financial statements	15 - 25

ST PAUL’S CATHEDRAL CHOIR SCHOOL

OFFICERS AND PROFESSIONAL ADVISERS

FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES The Chapter of St Paul’s Cathedral:

The Dean, the Very Rev’d Dr David Ison (retired 24[th] September 2022) The Dean, the Very Rev’d Andrew Tremlett (appointed 25[th] September 2022) The Rev’d Canon James Milne The Rev’d Canon Dr Neil Evans (appointed 1[st] June 2022) Canon Dr Paula Gooder The Venerable Sheila Watson Ms Pim Baxter (retired 8[th] March 2023) Ms Gillian Bowen (appointed 5[th] June 2022) Mr Clement Hutton-Mills

GOVERNORS

The Dean, the Very Rev’d Dr David Ison ((Chair of Governors) retired 24[th] September 2022) The Dean, the Very Rev’d Andrew Tremlett ((Chair of Governors, Vice Chair from 1[st] May 2023) appointed 25[th] September 2022)

The Rev’d Canon James Milne # Canon Dr Paula Gooder * (appointed 9[th] March 2023) Mr Gavin Ralston V Mrs Jill Aisher # (retired 19[th] June 2022) Col Edward Yorke $ (retired 15[th] May 2023) Mr Ian Wilson KC (retired 15[th] May 2022) Mrs Jane Sladdin # (retired 31[st] August 2023) Mrs Hatty Morley $ * (retired 31[st] August 2023) Mr Mark Coote W (retired 14[th] July 2023) Ms Pim Baxter $ (retired 8[th] March 2023) Mr Robert-Jan Temmink KC (Vice Chair of Governors, Chair from 1[st] May 2023) Mr Andrew de Silva X Mr Edward Wild $ (appointed 4[th] October 2022) Mr Simon Robson Brown * (appointed 4[th] October 2022)

Member of the Finance and Resources Committee V Chair of Finance and Resources Committee # Member of the Curriculum and Standards Committee X Chair of Curriculum and Standards Committee $ Member of Marketing and Communications Committee W Chair of Marketing and Communications Committee

HEADMASTER

Mr Simon Larter-Evans BA (Hons), PGCE, FRSA (retired 31[st] August 2023)

HEAD

Mrs Judith Fremont-Barnes MA (Hons) MEd (appointed 1[st] September 2023)

BURSAR

Mr Martin Kiddle (deceased February 2023) Mr Steve Vickery MA MSc (appointed 1[st] June 2023)

CATHEDRAL DIRECTOR OF MUSIC

Mr Andrew Carwood +

+in attendance at all Governing Body meetings

REGISTERED OFFICE CHARITY REGISTRATION NUMBER 2 New Change 312718 London EC4M 9AD

ST PAUL’S CATHEDRAL CHOIR SCHOOL

OFFICERS AND PROFESSIONAL ADVISERS

FOR THE YEAR ENDED 31 DECEMBER 2022

BANKERS

Lloyds Bank plc 70 – 71 Cheapside London EC2V 6EN

SOLICITORS

Winckworth Sherwood LLP Minerva House 5 Montague Close London SE1 8BB

Veale Wasbrough Vizards LLP Barnards Inn 86 Fetter Lane London EC4A 1AD

SA Law LLP Gladstone Place 36-38 Upper Marlborough Road St Albans Hertfordshire AL1 3UU

AUDITOR

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

INSURERS

Ecclesiastical Insurance Office plc Beaufort House Brunswick Road Gloucester GL1 1JZ

ST PAUL’S CATHEDRAL CHOIR SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ST PAUL’S CATHEDRAL CHOIR SCHOOL

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their annual report and the audited financial statements for the year ended 31 December 2022, prepared in accordance with the Financial Reporting 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 Choir School under Statute XVI of the Instrument 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 management of the School. The role of the Cathedral is as the seat of the Bishop of London and a centre for worship and mission. On 1 September 2005 an Instrument of Delegation delegated responsibility for the governance of the School to a Governing Body (the current members of which are listed on Page 2 of this document).

The School, which is unincorporated and has charitable status, has its affairs overseen by a Trustee body. The Trustees of the school are the Chapter of St Paul’s Cathedral. The Chapter also has representation on the Governing Body, which consists of up to 12 members. The Body has a Finance and Resources Sub-Committee, a Curriculum and Standards Sub-Committee and a Marketing and Communications Sub-Committee, the last set up in 2021 to help support the expansion of school numbers and counter competition among city schools. Other working parties are set up as the need arises. The Governors delegate day to day management responsibilities to the Headmaster and the Senior Leadership Team which comprises the Bursar, the Senior Deputy Head, Deputy Head Academic, Head of Boarding and the Head of Pre Prep.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The School is governed by its Instrument of Delegation, which came into effect on 1 September 2005 and is subject to a five yearly review with a cancellation clause. The Instrument of Delegation will be reviewed in the 2023/2024 academic year.

Governing Body

The Governing Body, when complete, consists of The Dean and up to four members of Chapter, and seven lay governors. The initial lay governors were appointed by the Chapter, in consultation with the Head, but lay governors are now proposed at full Governors’ meetings by a nominations sub-committee and are approved and formally appointed by Chapter in accordance with the Corporation’s recruitment policies. Lay governors are appointed according to the specialist skills they can offer. The Cathedral and School have begun work to review the constitution of the Governing Body within the Instrument of Delegation.

Trustee and Governor Training

New trustees and governors are inducted into the working of the School by the Head and Bursar, and are regularly updated through briefings at the School and external trustee and governor training courses. At a minimum, every Governor is required to undertake safeguarding training which is provided online.

The Governors meet at least three times a year to determine the general policy of the School and to review its overall management and control. The work of overseeing the implementation of most of the Governing Body’s policies is carried out by the Finance and Resources Sub-Committee, which meets before each meeting of the full Governing Body and at other times as required. The Governors’ Curriculum and Standards Sub-Committee continued to monitor the education standards of the school and policies relevant to that committee’s areas of expertise and oversight. The Marketing and Communications Sub-Committee oversees the promotion of the school as well as communication with current parents and supporters.

St Paul’s Cathedral Choir School is an active member of the Independent Association of Preparatory Schools (IAPS), for the promotion and maintenance of preparatory school standards generally, and of the Choir Schools Association. It also takes part in peer-group studies for the evaluation of quality and performance improvement methods. The school is also a member of the Independent Schools Bursars’ Association, giving it access to the latest financial and management developments in the education sector.

By co-operating with local 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.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ REPORT (continued)

CHARITABLE OBJECTS

St Paul’s Cathedral Choir School exists for the education, nurture and care of the choristers of St Paul’s Cathedral. It also has a responsibility to educate such other pupils between the ages of four and thirteen as can be properly accommodated from time to time within the school.

Aims and Principles

St Paul’s Cathedral Choir School is a Christian, co-educational community where the values of love, justice, tolerance, respect, honesty, service and trust are encouraged and practised to promote positive relationships throughout the school community.

The school aims to instil a love of learning through a broad curriculum. It aims to give each pupil the opportunity to develop intellectually, socially, personally, physically, culturally and spiritually. All pupils are encouraged to work to the best of their ability and to achieve standards of excellence in all of their endeavours.

Through the corporate life of the school and through good pastoral care, the school encourages the independence of the individual as well as mutual responsibility. It aims to make its pupils aware of the wider community and encourages a close working relationship with parents and guardians.

Principal Activity

St Paul’s Cathedral Choir School’s principal activity continues to be the provision of education in a boarding environment for the St Paul’s Cathedral choristers, of which, currently, there can be up to 36. In order to deliver a financially viable curriculum and to create a more balanced school environment for the choristers, it educates approximately 250 day children from the ages of 4 to 13.

Aims for the Year

The Governors’ main objective continues to be to educate all the School’s pupils to at least the same high standard achieved in previous years, so that they can benefit from their chosen senior school for the completion of their education in due course and to continue the Corporation’s aim and work to introduce female choristers to the Cathedral’s choir (and to educate those female choristers alongside their male colleagues at the school). The strategy for achieving this is to maintain a high teacherto-pupil ratio, tailoring our services as appropriate in each case to suit individual needs. The School’s recent building development of a new boarding house has allowed improvements to staff accommodation and the creation of new classroom space. From September 2023, the Pre-Prep will have a 2-form entry at Reception, Year 1 and Year 2. .

REVIEW OF ACTIVITIES AND ACHIEVEMENTS

During the year there were on average 25 boy choristers aged between 7 and 13, 158 day pupils of the same ages, and 87 preprep children aged between 4 and 7 on the school’s roll. The whole school is mixed, although there are fewer girls than boys in the main school. At the end of 2022 there were 105 girls in the school (2021: 102). In September 2022 there was a second class in Reception making five classes in the Pre-Prep. For the first time in the Cathedral’s history, from September 2023, female choristers hae been admitted as probationers to the Cathedral’s choir and those female choristers are also educated at the school.

Post the covid-era, sports fixtures, cultural visits and music performances have returned in good spirits, and we continued to plan optimistically and flexibly.

In the event 2022 was very near to normal, with face to face teaching provision offered throughout the year, and a wide range of music and sporting activities, from concerts to fixtures too numerous to recount. Assemblies were divided into two smaller groups in the Hall, a habit we have continued as the school grows in number. Music exams returned to normal, with outstanding results in ABRSM exams as expected.

School trips, including the annual Y7 residential to France, also took place. Christmas activity for the school choirs, above and beyond chorister commitments, returned happily and fundraising across the school returned with vigour.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ REPORT (continued)

All of the leavers of 2021-22 went on to good senior schools. 26 scholarships were offered to leavers: seven academic, 13 music, one sport, four art, one all-rounder. This achievement has been helped greatly by the high-quality teaching staff we have been able to retain and recruit in the face of intense competition from other London schools, and who maintain high standards in an increasingly competitive market for senior school places in London and elsewhere.

The final sectional completion for the new boarding house, now named the Martin Kiddle House in memory of the late School Bursar, was the 5[th] March 2021. The final project cost was £8.2m with the commitment by the School to this cost was in excess of £4.0m. A significant individual donation of £1m over three years has been used to reduce the level of external bank loan funding and mitigate the impact on reserves.

The financing of the building project led to a fall in the level of the School’s reserves from 2020/21 onwards but the Governors will maintain the reserves at prudent levels in line with their reserves policy.

Risk Management, and principal risks and uncertainties

A detailed Risk Management assessment is prepared annually then updated each term to include both internal and external factors that may impact on the School’s operation. Their likelihood and potential impacts are assessed and any required action is formulated. The main risks under consideration are the impact on future pupil numbers of two main trends: the affordability of school fees in the light of the possible addition of VAT from 2025 onwards, and greater competition in the School's catchment area. The Governors are also aware of significant cost pressures such as the potential for higher employer contributions to the Teachers' Pension Scheme and higher utility and other core costs. Higher interest rates have increased the cost of servicing the loan from St Paul's Cathedral, although the Governors have been able to make regular capital repayments to reduce this burden. The proximity of St Paul’s Cathedral and other City institutions means 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 Security Advisory group meetings to ensure they are up to date with the latest advice and amend emergency procedures as appropriate. Robust plans are in place for dealing with emergencies that may arise either internally or externally to the school. The school is investigating an internal alarm system.

Day to day health and safety is monitored by the school Health and Safety Committee who are supported by PIB Risk Management Advisors. This committee reports directly to the F&R Sub-Committee and makes an annual report of all accidents involving pupils. The data and trends are monitored by the Full Board. As part of their annual review, PIB will look at all of the required inspection reports which include PAT testing, legionella, asbestos, fire and smoke alarm test, high pressure vessels, lifts, gas safety checks and kitchen equipment servicing.

In March 2022, a new risk was identified when the school was unable to meet the requirements of the 3 yearly Independent Schools Inspectorate (“ISI”) regulatory compliance inspection. The ISI has deemed that the school is failing to meet its full obligation to accommodate and educate choristers in respect of gender equality according to the Equality Act 2010. Mitigation is underway with a short term and longer term Action Plan. Subsequently, and as anticipated the school was subjected to an ISI unannounced progress inspection in May 2023. The ISI inspectors were able to see the steps being taken to create a choral programme for girls of equal stature to that for boys. The school and Cathedral will begin to admit girl probationers as day pupils in the first instance in September 2023, with the aim of offering a full and equal chorister boarding programme to both girls and boys from September 2025. The Chair and Vice Chair of Governors were present at the ISI verbal feedback and noted that the ISI were reassured by these mitigation plans. The Governors therefore judge that the school remains a going concern.

A formal ISI report was received in July 2023 with a more positive and nuanced narrative, but the school remains technically non-compliant. Further ISI inspections are expected every six months.

Public Benefit

The Trustees are aware of the Guidance issued by the Charity Commission under the Charities Act 2011 in relation to Public Benefit and are mindful of their obligations to have regard thereto. The Trustees are confident the Charity’s activities are in pursuit of its objects and are delivering public benefit. This is achieved by the provision of education for the choristers and school bursaries to fund the education of non-chorister pupils whose parents would not normally be able to fund the required fees. The boarding fees of choristers are partly funded by the St Paul’s Cathedral Chorister Trust. Choristers are offered a place based on their singing ability and personal attributes only. The Cathedral Church of St Paul pays the tuition fees for all Choristers.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ REPORT (continued)

During 2022, seven day-pupils received support for part or all of their fees from the Bursary Fund and 12 choristers received support from the Chorister Trust (see notes 11 and 14 to the financial statements) for their Boarding Fees. While recognising inflationary pressures and ongoing cost increases to the school (including food and utilities inflation), Governors decided to limit the fee increase to 5.75% effective from September 2022.

Governors continue to encourage the school to take every opportunity to diversify their activities in the area of education, particularly in regard to the provision of musical opportunity to as wide a public as possible.

The Cathedral Choir supports musical education and partnership work benefitting state schools across the Diocese of London. A number of visiting choirs are hosted by the school and occasionally are able to participate in choral events alongside the Choir.

Members of the music staff seek to share the experience of singing at St Paul's with children in more than 30 schools per year, successfully reaching and recruiting choristers from diverse backgrounds. In addition, the partnership work actively support the CPD of music teachers in partner schools as well as musical colleagues in other Cathedrals.

During 2022, fundraising activities returned and raised money for Jeans for Genes, Children in Need, Christmas Jumper Day – Save the Children, Christmas Service – Great Ormond Street Hospital, RBL Poppy Appeal, World Book Day, and the children continue to enjoy PupDates from the guide dog sponsored by the school.

The School continues to develop its network of primary educators in the state maintained sector (primary) to share professional development, such as through collaborating with subject cluster groups, for example in modern foreign languages. In addition, the Head is a member of the City of London’s Head Teachers‘ Forum, a group of head teachers from across the City of London (both maintained and independent), who meet to share information, best practice and, where possible, resources.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The school generated net income during the year of £384,208 (2021: £665,732) representing 7.5% (2021: 14.7%) of total revenues. However this included £287,324 of restricted income (2020: £84,721) of which £284,263 (2021: £81,625) was donations for the boarding house project. Pupil numbers averaged 270 in 2022 (2021: 246), ensuring the school made an unrestricted operating surplus of £252,304 (2021: £420,387) being 5.2% (2021: 9.3%) of total unrestricted revenues. The surplus was achieved after charging depreciation for the year of £241,134 (2021: £211,815). Capital expenditure for 2022 was spent on ICT £20,145, general building works £65,655 and fixtures and fittings £25,479.

In the year £96,293 (2021: £78,051) has been set aside as Designated Funds. These have been designated by the Governors for the purpose of awarding bursaries to day pupils. The sum is made up of income from the School Capital Fund (£31,027) and 6% of the previous year’s Unrestricted Fund surplus (£15,120), resulting in a further transfer (£35,026) being required from the current year surplus to clear a deficit in the Bursary Fund.

The other part of the funding for the building project came from a loan from St Paul’s Cathedral of £2.5 million taken out by the Cathedral from Lloyds Bank and repayable by 2033. The School has agreed to make back to back payments to the Cathedal to cover payments of interest and repayments of capital to Lloyds Bank. In December 2022, the balance stood at £1,888,645.

Under the same Instrument of Delegation the Cathedral transferred to the school the “School Capital Fund” and the School Scholarships, Prizes and Bursaries Fund (known as the Prizes Fund) on 31 December 2005 amounting to £615,000. At the end of 2022 these endowment funds stood at £1,146,145 (2021: £1,299,053) and the accumulated restricted income arising from the latter endowment stood at £38,677 (2021: £33,125) held as a cash balance.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ REPORT (continued)

Reserves Policy

Reserves consist of Unrestricted funds, Restricted funds (cash balance of prizes fund) and Endowment funds. The Trustees will seek to maintain a minimum level of unrestricted reserves equivalent to 25% of one year’s running costs, defined as expenditure on charitable activities. At 31 December 2022, unrestricted reserves stood at £7,499,901 or 163.7% of the 2022 school expenditure on charitable activities, £4,581,718. However, a large part of these reserves represent the investment in the building project and are therefore not liquid. Cash reserves at 31 December 2022 were £1,496,705, representing 33% of spending on charitable activities during the year. Governors consider that a prudent sum given financial headwinds and a very competitive local market in fee-paying pre- and prep-school offers from competitor schools and ever-increasing costs.

Senior management remuneration policy

The remuneration of the Head and Bursar is set by the Governors on an annual basis.

FUNDRAISING POLICY

The School fundraises primarily from institutions, trusts and foundations, together with occasional event-based fundraising and individual donations.

The charity does not engage in cold-calling or street-based fundraising or use third party fundraisers. The school has not received any complaints in the year in connection with the propriety 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 account the needs of any potential donor who may be in vulnerable circumstances or require additional care and support to make an informed decision.

The charity has fundraising costs of less than £100,000; hence it has not been asked to register with the Fundraising Regulator and, in view of the nature of the fundraising undertaken, the charity has not to date registered voluntarily.

FUTURE PLANS

In March 2021, the school completed its first major building project since the school was built in the mid 1960s. This has allowed a top-class boarding facility to be made available to 36 boarding students. The Chapter is now considering how to admit girl choristers on the same basis as boys, with work underway to attract funds, market the opportunity and to build appropriate boarding accommodation to the same standard as the existing boarding house; this will become a major focus for the Cathedral and School in the next 24 months. Girls are able to join the cathedral choir as probationers from September 2023, although boarding provision will not be available until September 2025.

The growth of the Pre-Prep provision is almost now complete, with the 5[th] class welcomed in Year 1 in September 2022 and a 6[th] class from September 2023. The school’s key objectives continue to be the educating of pupils to the same high standards, or higher, as in previous years.

The Trustees remain confident that St Paul’s Cathedral Choir School will be a going concern for the next 12 months and beyond. Budgets and forecasts have been updated to reflect the impact of current inflationary pressures and competition from other city schools. However, the Governors do recognise greater uncertainty as to pupil numbers than for some time, reflecting cost pressures and the change in working practices 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 working together to define a new 5 year strategic plan, cognisant that the school remains an integral and vital part of the Cathedral’s mission.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ REPORT (continued )

Investment Powers and Trustees’ Authority

The school is wholly owned by the Cathedral Church of St Paul in London. It is therefore subject to the Cathedrals’ Measure 2021 in addition to charity law. Trustees may invest funds in any of the following:

i) Land
ii) Funds administered for the Central Board of Finance of the Church of England
iii) Investments in which trustees may invest under the general powers of investment in the Trustees Act 2000
iv) The improvement of development or property belonging to the Cathedral
The Investment Policy for School funds must meet the requirements of the CBF Church of England Ethical Policy.

The Trustees regularly consider the performance by its investment manager and of the investments held. The Trustees consider, supported by an independent review, that performance is satisfactory.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

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 of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently
observe the methods and principles in the Charities SORP
make judgments and estimates that are reasonable and prudent
state whether applicable accounting standards have been followed
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 proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and regulations made thereunder. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Governing Body and the Board of Trustees on 18[th] September 2023 and signed on its behalf by:

Robert-Jan Temmink KC Chair of Governors

ST PAUL’S CATHEDRAL CHOIR SCHOOL

INDEPENDENT AUDITORS’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

Opinion

We have audited the financial statements of St Paul’s Cathedral Choir School for the year ended 31 December 2022 which comprise statement of financial activities, the balance sheet, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of the charity’s net movement in funds 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 Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made 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 financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

adequate accounting records have not been kept by the charity; or
sufficient accounting records have not been kept; or
the charity financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

INDEPENDENT AUDITORS’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement, the 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 the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to registered charities and independent schools, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and other factors such as taxation.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to manual accounting journals. Audit procedures performed by the engagement team included:

Inspecting correspondence with regulators and tax authorities;
Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Evaluating management’s controls designed to prevent and detect irregularities;
Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
Challenging assumptions and judgements made by management in their critical accounting estimates.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP 10 Queen Street Place Statutory Auditor London 17/10/2023 EC4R 1AG haysmacintyre is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

ST PAUL’S CATHEDRAL CHOIR SCHOOL

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

					Total	Total
		Unrestricted	Restricted	Endowment	2022	2021
	Note	£	£	£	£	£
Income from:
Donations		39,613	284,263	-	323,876	115,160
Investments	3	35,616	3,061	-	38,677	33,125
Charitable activities:
School fees	2a	4,408,602	-	-	4,408,602	4,053,148
Other ancillary	2b
income		329,093	-	-	329,093	317,449
Other trading	2c	18,597	-	-	18,597	14,318
		------------------------	--------------------------	--------------------	--------------------------	--------------------------
Total income		4,831,521	287,324	-	5,118,845	4,533,200
		===========	===========	===========	===========	===========
Expenditure on:
Charitable activities	5	(4,579,217)	(2,501)	-	(4,581,718)	(4,030,045)
		------------------------	--------------------------	------------------------	-----------------------	-----------------------
Total Expenditure		(4,579,217)	(2,501)	-	(4,581,718)	(4,030,045)
		===========	===========	===========	===========	===========
Net income excluding
investments gains		252,304	284,823	-	537,127	503,155
Net (losses)/gains on	6
investments		-	-	(152,919)	(152,919)	162,577
		-------------------------	------------------------	------------------------	------------------------	------------------------
Net income/
(expenditure)		252,304	284,823	(152,919)	384,208	665,732
Transfers between	10
funds		284,263	(284,263)	-	-	-
		------------------------	------------------------	------------------------	------------------------	------------------------
Net movement in
funds		536,567	560	(152,919)	384,208	665,732
Reconciliation of
funds
Total funds brought	10-
forward	12	6,963,334	38,084	1,299,054	8,300,472	7,634,740
		------------------------	------------------------	------------------------	------------------------	------------------------
Total funds carried
forward		7,499,901	38,644	1,146,135	8,684,680	8,300,472
		===========	===========	===========	===========	===========

All amounts derive from continuing activities.

All gains and losses recognised in the year are included in the Statement of Financial Activities.

Notes 1 to 14 form part of these financial statements.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

BALANCE SHEET

AS AT 31 DECEMBER 2022

		Total	Total
		2022	2021
	Note	£	£
FIXED ASSETS
Investments	6	1,146,134	1,299,053
Tangible assets	7	8,649,072	8,799,092
		--------------------	--------------------
TOTAL FIXED ASSETS		9,795,206	10,098,145
		--------------------	--------------------
CURRENT ASSETS
Debtors	8	82,826	122,730
Cash at bank and in hand		1,496,705	1,348,153
		-------------------	-------------------
TOTAL CURRENT ASSETS		1,579,531	1,470,883
		-------------------	-------------------
Creditors: amounts falling due	9
one year		(981,424)	(972,466)
		--------------------	-------------------
NET CURRENT ASSETS		598,107	498,417
Creditors falling due after one year		(1,708,633)	(2,296,090)
		--------------------	--------------------
TOAL NET ASSETS		8,684,680	8,300,472
		==========	==========
FUNDS
Unrestricted funds	11	7,499,901	6,963,334
Restricted funds	10	38,644	38,084
Endowment funds	10	1,146,135	1,299,054
		--------------------	--------------------
TOTAL FUNDS		8,684,680	8,300,472
		==========	==========

Notes 1 to 14 form part of these financial statements. These financial statements were approved and authorised for issue by the Board of Trustees on 18[th] September 2023

Signed on behalf of the Governing Body and the Board of Trustees:

Robert-Jan Temmink KC Chair of Governors

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES

Accounting Basis

The financial statements are prepared under the historical cost convention as modified by the revaluation of investment assets to market value and in compliance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”) and the Charities Act 2011.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements are prepared in sterling which is the functional currency of the Charity. Monetrary amounts in these financial statements are rounded to the nearest pound.

The Charity is a Public Benefit Entity as defined by FRS 102.

Going concern

The trustees consider that there are no material uncertainities affecting the Charity’s ability to continue as a going concern for at least twelve months form the date of approval of the accounts.

Fees and Similar Income

Fees receivable for the provision of education and charges for services and use of premises are accounted for in the period when the school is entitled to receive them, they can be measured and the receipt is probable. These are included in income from charitable activities. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the school from its unrestricted funds, but include contributions received from Restricted Funds for scholarships, bursaries and other grants.

Donations are also accounted for on a receivable basis although in practice the criteria of entitlement, measurement and probability are frequently only met at the point of receipt.

Expenditure

Expenditure is accounted for on an accruals basis. VAT is included with the item of expense to which it relates. Approximately 65% of support costs are spent in direct support of teaching activity and the remaining 35% on welfare and premises support. Depreciation on the school minibus is included in support costs.

Teaching Materials

Supplies of games equipment, books, stationery and sundry materials are written off to the Statement of Financial Affairs as soon as the expenditure on procuring them is incurred.

Capitalisation of Fixed Assets

Assets above the cost of £250 with a useful life exceeding one year are capitalised on the balance sheet and depreciation is provided as set out in the following paragraph.

Depreciation

Depreciation of tangible assets is provided at rates calculated to write off the excess of cost over the estimated residual amount evenly over the estimated useful economic lives of each class of asset on a straight line basis, subject to annual review. Only assets costing over £250 are capitalised.

The useful economic lives are currently as follows: Buildings improvements and extensions 10 - 20 years Furniture and equipment 3 - 10 years New Building works 25-50 years

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES (continued)

Pension Schemes

The School contributes to the Teachers’ Pension Scheme at rates set by the Scheme Actuary and advised to the School by the Scheme Administrator. The Scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the Scheme which are attributable to the Charity. In accordance with FRS102 the Scheme is accounted for as a defined contribution scheme, whilst it is a defined benefit scheme. Contributions are accounted for as a defined contribution scheme and contributions are accounted for when advised as due by the Scheme Administrator.

The St Paul’s Cathedral Final Salary Pension Scheme ceased taking further contributions in May 2007 and under the arrangement made with the Cathedral the School is not required to make further contributions.

The School also contributes to a defined contribution scheme with Aviva . The scheme is available to all employees. The assets of the scheme are held separately in independently administered funds.

For defined contribution schemes the amount charged to the Statement of Financial 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 accruals or prepayments in the balance sheet.

Taxation

The School is a registered charity and as such is exempt from taxation on its income and gains to the extent that they are applied to its charitable purposes.

Cashflow Statement

In accordance with the provisions of FRS102 section 1.12 a cash flow statement has not been prepared as the School’s cash flows are included in the consolidated financial statements of St Paul’s Cathedral.

Investments

All investments are revalued annually at open market value. Any unrealised change in value since the date of acquisition or the last balance sheet date is credited or charged to the Statement of Financial Activities. Any realised gain or loss (calculated as net sales proceeds less value at the last balance sheet date, or cost if acquired during the year) is also credited or charged to the Statement of Financial Activities.

Cash at Bank and in Hand

Cash at Bank and in Hand includes funds held on short term deposits. All the funds on Deposit are for less than 3 months and allow immediate access.

Funds

Funds are classified between restricted and unrestricted in accordance with the legal constraints on their use, and the consequent degree of flexibility which the Trustees have on using the income that gave rise to the funds.

Restricted Funds

These are funds subject to specific conditions or trusts, which are binding on the Trustees. The restriction may be on income or capital or both.

Unrestricted Funds

These are all funds other than endowment and restricted funds and include funds designated for a specific purpose by the Trustees.

Designated Funds

These are funds allocated to the Bursary Fund and are made up of Income from the Capital fund plus 6% of the prior year’s Unrestricted surplus and fund from the current year surplus sufficient to ensure the fund is not in deficit.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES (continued)

Critical accounting judgments and sources of estimation uncertainty

In the application of the School’s accounting policies, which are described in this note, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

2a.	FEE INCOME	2022	2021
		Total	Total
		£	£
	Gross school fees	4,516,707	4,147,636
	Less: discounts	(11,812)	(16,437)
	Less: total bursaries and prizes	(96,293)	(78,051)
		-------------------	-------------------
	Net fees receivable	4,408,602	4,053,148
	Add: bursaries and prizes funded by restricted funds	-	-
		-----------------	-----------------
	Total	4,408,602	4,053,148
		========	========
2b.	OTHER ANCILLARY CHARITABLE INCOME
	Extras	260,638	250,078
	Registration fees	18,800	20,500
	School trips	19,895	16,716
	Other	29,760	30,155
		-----------------	-----------------
	Total	379,093	317,449
		========	========
2c.	OTHER TRADING
	Music and uniform sales	12,430	12,746
	Other	6,167	1,572
		-----------------	-----------------
	Total	18,597	14,318
		========	========
3.	INVESTMENT INCOME
	Investment Income from Capital Fund	31,027	30,007
	Investment Income from Scholarship and Prizes Fund	3,061	2,960
	Interest on Cash Deposits	4,589	158
		-----------------	-----------------
	Total	38,677	33,125
		========	========
4.	EXPENDITURE
	Charitable expenditure includes:
	Depreciation	241,164	211,815
	Auditors’ Remuneration	9,600	9,600
		========	========
	Total Staff Costs comprised:
	Wages and Salaries	2,408,746	2,191,711
	Social Security Costs	248,260	214,014
	Other Pension Costs	335,835	342,813
		-----------------	-----------------
	Total	2,992,841	2,748,538
		========	========

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

EXPENDITURE (continued)	2022	2021
	No.	No.
The average number of employees in the year:
Teaching	33	33
Music	20	20
Teaching assistant	13	13
Domestic	8	8
Administration	5	5
	-----------------	-----------------
Total	79	79
	========	========
The number of higher paid employees	2022	2021
£60,000 - £70,000	1	1
£70,000 - £80,000	1	1
£80,000 - £90,000	-	-
£90,000 - £100,000	1	1
Aggregate employee benefits of the Senior Management
Team (Key Management Personnel) are:	£491,851	£481,417

The Governors received no remuneration, reimbursed expenses or other benefits for the current or previous years.

5. ANALYSIS OF TOTAL EXPENDITURE

	Staff			Total
2022	Costs	Other	Depreciation
	£	£	£	£
Education:
Teaching	2,488,887	186,593	37,245	2,712,725
Welfare	83,621	359,588	-	443,209
Premises	182,605	448,412	203,910	834,927
Support costs	266,841	194,394	-	461,235
Governance costs	-	129,622	-	129,622
	-----------------	----------------	-----------------	-----------------
Total	3,021,954	1,318,609	241,155	4,581,718
	========	========	========	========
	Staff			Total
2021	Costs	Other	Depreciation
	£	£	£	£
Education:
Teaching	2,327,294	183,351	42,872	2,553,517
Welfare	55,111	318,859	-	373,970
Premises	131,641	266,176	168,943	566,760
Support costs	260,387	122,013	-	382,400
Governance costs	-	153,398	-	153,398
	----------------	-----------------	----------------	-----------------
	2,774,433	1,043,797	211,815	4,030,045
Total	========	========	========	========

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

5. ANALYSIS OF EXPENDITURE (continued)

Support costs include the costs of the five administrative staff of the school. Other support costs relate to expenses involved in the support of Teaching, Welfare and Premises.

6. INVESTMENTS

The Investment funds (Capital and Scholarships Funds) are under the management of CCLA Investment Management Ltd and consist mainly of quoted equities. There were no additions and disposal in the year

2022	Capital	Scholarship	Total
	Fund	& prizes fund	£
Market value at 1 January 2022	1,182,398	116,655	1,299,053
Revaluation in the year	(139,187)	(13,732)	(152,919)
	----------------	-----------------	-----------------
Market Value at 31 December 2022	1,043,211	102,923	1,146,134
	========	========	========
Split of investments
Investment assets in the UK 31 December 2022			401,146
Investment assets outside the UK 31 December 2022			744,988
			----------------
Total			1,146,134
			========
Historical cost of investments			601,940
			========
2021	Capital	Scholarship	Total
	Fund	& prizes fund	£
Market value at 1 January 2021	1,034,420	102,056	1,136,476
Revaluation in the year	147,978	14,599	162,577
	----------------	-----------------	-----------------
Market Value at 31 December 2021	1,182,398	116,655	1,299,053
	========	========	========
Split of investments
Investment assets in the UK 31 December 2021			453,759
Investment assets outside the UK 31 December 2021			845,294
			----------------
Total			1,299,053
			========
Historical cost of investments			601,940
			========

As at the time of signing the accounts the value of Investments was not materially different from the year end. No disposals or acquisitions have been made since the year end.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

TANGIBLE FIXED ASSETS
		Fixtures,
	Building	fittings and
	improvements	equipment	Totals
	£	£	£
Cost or Valuation
At 1 January 2021	10,084,798	756,514	10,841,312
Additions	65,655	25,479	91,134
	---------------------	-------------------	-----------------
As 31 December 2022	10,150,453	781,993	10,932,446
	==========	=========	========
Depreciation
At 1 January 2021	1,428,836	613,384	2,042,220
Charge for the year	203,430	37,724	241,154
	---------------------	--------------------	-------------------
At 31 December 2022	1,632,266	651,108	2,283,374
	==========	==========	=========
Net Book Value
At 31 December 2021	8,655,962	143,130	8,799,092
	==========	==========	==========
At 31 December 2022	8,518,187	130,885	8,649,072
	==========	==========	==========

The freeholds of the St Paul’s Cathedral Choir School and St Augustine’s House, New Change, London EC4M 9AD are owned by the Corporation of the Cathedral Church of St Paul in London. Accordingly they are not shown on the School’s balance sheet.

8.	DEBTORS	2022	2021
		£	£
	Amounts falling due within one year
	School fees	(6,990)	20,116
	Accrued Income	73,761	85,862
	Other Debtors	16,055	16,752
		----------------	-----------------
		82,826	122,730
		========	========
9.	CREDITORS	2022	2021
		£	£
	Amounts falling due within one year
	Returnable deposits	144,600	137,800
	Fees in advance	170,002	165,000
	Sundry Creditors	39,175	37,805
	Accruals and Deferred Income	449,694	474,211
	Due to St Paul’s Cathedral	177,950	157,650
		------------------	------------------
		981,421	972,466
		========	=========
	Amounts falling due after one year
	Amounts owing to St Paul’s Cathedral	1,708,633	2,296,090
		=========	========

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

9. CREDITORS (continued)

In September 2020, St Paul’s Cathedral entered into a £2.5m loan facility with Lloyds Bank and subsequently loaned the School an equivalent amount on the same repayment terms to fund the completion of the building project. Amounts were drawn from St Paul’s Cathedral in late September 2020, and the full £2.5m was drawn down by 31 March 2021. Capital repayments started in November 2021 and the balance will be repaid to the Cathedral over twelve years at an interest rate of 3.23% above the Bank of England base rate.

DEFERRED INCOME	2022	2021
	£	£
At 1 January	325,376	241,043
Released in year	(325,376)	(241,043)
Deferred in year	312,441	325,376
	------------------	------------------
At 31 December	312,441	325,376
	========	=========

Deferred income relates to fees received in advance of the Spring Term.

10. ENDOWMENT AND RESTRICTED FUNDS

Endowment and restricted funds consist of the Capital fund and Scholarship and Prize fund. All funds are held as either cash or investments under the management of CCLA Investment Management Ltd and consist mainly of quoted equities.

Endowment funds - 2022	Capital	Scholarship	Total
	Fund	& prizes fund	£
Fund at 1 January	1,182,399	116,655	1,299,054
Revaluation in the year	(139,187)	(13,732)	(152,919)
	----------------	-----------------	-----------------
Fund at 31 December 2022	1,043,212	102,923	1,146,135
	========	========	========
Endowment funds - 2021	Capital	Scholarship	Total
	Fund	& prizes fund	£
Fund at 1 January	1,034,421	102,056	1,136,477
Revaluation in the year	147,978	14,599	162,577
	----------------	-----------------	-----------------
Fund at 31 December 2021	1,182,399	116,655	1,299,054
	========	========	========
Restricted fund (held as cash) - 2022			Total
			£
Fund at 1 January			38,084
Net income for the year			284,823
Transfers to unrestricted funds			(284,263)
			-----------------
Fund at 31 December			38,644
			========

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

10. ENDOWMENT AND RESTRICTED FUNDS (continued)

Restricted fund (held as cash) -2021	Total
	£
Fund at 1 January	37,068
Net income for the year	82,768
Transfers to unrestricted funds	(81,752)
	-----------------
Fund at 31 December	38,084
	========

The balance on restricted reserves relates to the School Scholarship and Prizes Fund.

School Capital Fund

Income generated by the Capital Fund may be drawn down by and utilised 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. Also, 50% of the Capital of the Fund is available to be borrowed by the Governing Body for specific 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 Body to award prizes and scholarships at their discretion, and is therefore recognised in unrestricted funds. No capital was transferred to Unrestricted Reserves in the year.

11. UNRESTRICTED FUNDS: MOVEMENTS IN THE YEAR 2022

	General	Designated	Designated	Total
		Income from	School
		Capital Fund	Bursary
	£	£	£	£
At 1 January 2022	6,963,334	-	-	6,963,334
Surplus / (deficit) for the year	317,570	31,027	(96,293)	252,304
Designation in the year (note 12)	(65,266)	(31,027)	96,293	-
Transfer from restricted funds	284,263	-	-	284,263
	--------------------	--------------------	-----------------	-----------------
At 31 December 2022	7,499,901	-	-	7,499,901
	==========	==========	========	========

UNRESTRICTED FUNDS: MOVEMENTS IN THE YEAR 2021

	General	Designated	Designated	Total
		Income from	School
		Capital Fund	Bursary
	£	£	£	£
At 1 January 2021	6,461,195	-	-	6,461,195
Surplus / (deficit) for the year	468,431	30,007	(78,051)	420,387
Designation in the year (note 12)	(48,044)	(30,007)	78,051	-
Transfer from restricted funds	81,752	-	-	81,752
	--------------------	--------------------	-----------------	-----------------
At 31 December 2021	6,963,334	-	-	6,963,334
	==========	==========	========	========

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

12. DESIGNATED FUNDS

Income from School Capital Fund

In 2009, Governors, with the agreement of the Trustees, voted to transfer some or all of the income from the Capital Fund each year to the Bursary Fund in order to build this up for future use, this arrangement has continued and remains unchanged. Hence in 2020 all of the income was transferred to the bursary funds as shown in note 11.

School Bursary Fund

Since 2010 the Bursary Fund has been a Designated Fund. The Fund assists day children parents who find themselves in financial difficulty during their child’s stay in the school and it is hoped to extend this assistance to new families in the future. 6% of each year’s Unrestricted Fund surplus is put aside for this purpose. In the year £96,293 (2021: £78,051) has been set aside as Designated Funds. These have been designated by the Governors for the purpose of awarding bursaries to day pupils. The sum is made up of income from the School Capital Fund (£31,027) and 6% of the previous year’s Unrestricted Fund surplus (£15,120), resulting in a further transfer (£35,026) being required from the current year surplus to clear the deficit in the Bursary Fund.

The Governors have agreed that Finance and Resources Committee will be responsible for overseeing the award of grants.

13. ULTIMATE PARENT

The Charity’s controlling entity is the Corporation of the Cathedral Church of St Paul in London commonly known as St Paul’s Cathedral. The results of the School are consolidated into the consolidated financial statements of St Paul’s Cathedral. Copies of the Cathedral’s financial statements are available on the Cathedral’s website.

14. STAFF PENSIONS

Teachers

The School participates in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £264,691, (2021: £278,964) and at the yearend £nil (2020: £nil) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, increased the employer contribution rate would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

Teachers (continued)

considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, but in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations .

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this 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 impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

Other Staff

Defined Contribution Scheme: 43 non-teaching staff participate in the defined contribution scheme run by Aviva and provided by St Paul’s Cathedral for its staff. The assets of the scheme are held in independently administered funds. The pension charge for 2021 includes contributions payable to the scheme of £71,144 (2021: £63,849)

Final Salary Pension Scheme: four non-teaching staff participated in the St Paul’s Cathedral Final Salary Pension Scheme which closed to service accrual on 15th May 2007. According to the terms of the Instrument of Delegation, all administration costs of the Cathedral Pension Schemes will be borne by St Paul’s Cathedral. As such no costs or liabilities are included in the accounts of St Paul’s Cathedral Choir School.

The Cathedral is responsible for a defined benefit pension scheme and the assets of the Scheme are held in a separate trustee administered fund. Although closed to service accrual, the retirement benefits for members of this scheme are based on employees’ final remuneration and the length of service to May 2007.

The pension cost is assessed in accordance with the advice of an independent actuary using the projected unit method on the basis of an annual valuation update and charged to the Statement of Financial Activities as described below.

There was a scheme funding valuation of the Scheme as at 30th September 2019. The funding plan is for the Scheme to hold assets equal to the value of the benefits using the methodology as set out in the Scheme’s Statement of Funding Principles. This valuation showed a scheme surplus of £0.9m.

The Trustees and Chapter therefore agreed that no further deficit contributions were required to meet the Statutory Funding Objective. In practice, this funding plan will be reviewed following the completion of subsequent scheme funding valuations, the next of which is due as at 30 September 2022.

ST PAUL’S CATHEDRAL CHOIR SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

15. RELATED PARTY TRANSACTIONS

Tuition fees of £419,854 (2021: £430,202) and music fees of £51,663 (2021: £53,624) were paid by St Paul's Cathedral to the School for the education of the Choristers. The school paid rental income to the Cathedral of £128,950 (2021: £125,195). The balance due to the Cathedral is detailed in Note 9

During the year the St Paul’s Cathedral Chorister Trust contributed £85,560 (2021: £83,303) towards the Boarding fees of 12 (2021: 12) choristers. The Precentor is a Trustee of the School and the Chorister Trust.

The Governors made aggregate donations to the school of £360 (2021 £350)

16. CAPITAL COMMITMENTS

The school building contract with Borras Construction Ltd was completed in March 2021. There are retentions still outstanding of £99,352 plus VAT equalling to make a total of £119,224.

There were no other capital commitments at 31 December 2022.

17. POST BALANCE SHEET EVENTS

The Governors of the St Paul's Cathedral Choir School and Chapter of the Cathedral have continued discussions on the legal identity and structure of the school. The Instrument of Delegation and Finance Memorandum require an update in the next 12 months as both the Cathedral and School re-examine governance, shared services and financial settlements. The School's financial results will continue to be consolidated in the Cathedral's financial statements.

The Cathedral has repaid the remaining balance of the loan from Lloyds Bank. The balance remains as a loan from the Cathedral to the School, but at a reduced rate of interest.