L THE CAVENDISH SCHOOL The Cavendish School Charitable Trust Limited Annual Report and Financial Statements 31 August 2023 Company Limited by Guarant@@ Registration Number 987480 IEngland and Wales) Charity Registration Number 312727 CONTENTS Reports Legal and administrative inforwnation Govemors. report (incorporating a strategic reporti Independent audtEor's report Financial Stataments Statement of financial activilies 20 BalanGe sheet 21 Statement of Cash flows 22 Principal a￿OuntIng policles 23 Notes to the financial statements 26 The Cavendlsh School Charitable Trust Limited LEGAL AND ADMINISTRATIVE INFORMATION Govornors S Battison B Crystal (Chair of Finance and General Purposes Committee. appolnled 23 May 20231 G Fontaine A M Gotto IC&Ch8ir of Governor8) K Hake E Molnar A P8ngoni% D Phllllps (resigned as Chsir of Finance and General Purposes Comrnittee 23 May 2023 and as GovemL* on 19 Sepl8mber 20231 N Rushlon Ico-chair of Governors) E Saudl lappoinled 26 Septemb&r 20221 A Tsoi M Webster Head T Lombard Secretary S Chen Cooper Bursar and Clork to the Governors S Chen Cooper Registered Prlncipal office The Cavendish School 31 Inverness Stre&t London NW1 7HB Telephone 020 7485 1958 Webslte www.cavendishschool.co.uk Company registration numbèr 987480 (England and Wales) Charity registratlon number 312727 Auditors Moore Kingston Smith LLP Floor 6 9 Appold Street London EC2A 2AP LEGAL AND ADMINISTRATIVE INFORMATION Bankers Lloyds TSB Bank plc 140 Camden High Street London NW1 ONG Sollcttors Harrison Clark Rickerbys Ltd Ellenborough House Wtsllinglon Street Chellenham GL50 1YD GOVERNOR'S REPORT (including a Strategic Report) For the year ended 31 August 2023 The Govemors {who are also dlrectors of The Cavendish School Charllable Trust for the purposes of company law and trustees lor the purposes of charity lawl present their stalulory report together with the financial statements of The Cavendlsh School Charitable Trust Limited (company registration number 987480 (England and Wales)) Ilhe 'charitable company I for the year ended 31 August 2023. The report has been prepared in accordance with Part 8 of the Charitiès Act 2011. The finanGial statements have been prepared in acwrdanGe with the accountlng policies sel out on pages 20 10 35 of the allacheé financial statements and comply with the charitsble company's memorandum and article5 of association, the Companies Act 2006 and Accounting and Reporting by Charities.- Statement of Recommended Practice applicable lo charities preparing their financial statements in accordan￿ with the Financial Reporting Standard applicable in the Unked Kingdom and R¢publi¢ of IrelanQ IFRS 1021. Legal Status The charitable company Is constSluled as a company Ilmiled by guarantee and nol having a share capital. The merllbers, who are also Governors, are liable lo contribute an amount not exceeding £1 each in the event of wlndlng up. The charllable company was Incorporat8d on 20 August 1970 by Memorandum of Association. Principal aims and objects The principal aims and objects of the charitable company are the advancement and promotion of education and, In particular, thé running of The Cavendish Schwl In Camden Town, London {Ihe school"). Mlsslon Vve aim to provide.. A nonfjelective, high-qualily, caring and diverse learning environment that promotes and respects a learning partnership betsveen home, school and the wider community. making the mo81 of whal London has lo offer. An educational approach that is always cenlred on and sensitive to the individual neècls of puplls and supports them to become resilient, Gonfidenl, positwe. flexible and independent learners. Our pupils are prepared for the future. A broad, balanced. stimulating and challengin9 curriculum with enrfchlng extrawcurrrcular opportunities so that pupils c8n reach their full potential In all areas of their learning and dovelopmgnl. A wolcoming, nurturing, vibr8nt, safe and sustainable learnlng environment. An excellent preparation ftsr pupils lo move confidently lo the next stage of their learning with the opportunity lo develop the skills, knowledge and understanding to become pc>sitiV8 and confident lifelong learners and role models. GOVERNOR'S REPORT (including a Strategic Report) For the year ended 31 August 2023 An environment that celebrates and builds on our original foundation of Catholic values and welcome5 those from all faiths and none. Through.. Appolnlmerrt, recruitsnent and dévelopment of a skilled and empathetic teaching and support stsff of the highest calibre. Effective leadership and managemonl that can provide a strategic vision for the school. Vve see ourselves as a carlng, Inclusive, non-seleclive community of indivSduals who enjoy working together to support and appreciale each other's person21 development and love of leaming. We are committed to providing equallty of opwrtunlty. Publlc benefit The Charftles Ad 2006 made changes which affect the school. princlpalEy removlng the presumption in law that education is for public benefit. Th& effect of this is a requirement that educational charities demonslrale the public benefit they provide. The Charity Commission has provided guidelines on the changes together with an analysis of the law affecting charities. These documents have been consldéred by the Govemors. who ar8 confident that the charitable company is operating In the interest of the public. Furthermore, the object of the charitable company is the advancement and promotion of education, specifically the running of the Cavendish School for, but not excluswely for. children of the Roman Celholic faith. which is a charitable purpose within the meaning of the Charities Act 2011. This report is designed to meet the Ch8rlty Cornrnissron's requirement to describe the public benefit provld&d by the charitable company. Th8 paragraphs below describe the various ways In which th8 Govemors believe that the charitable ¢ompany provides FMJbliG benefit. The major public benefit th8 school prtsvides is a Ti¢h and diverse education. without recourse to the public purse and a strong ethos of a positive contribution to our I￿al community. Much of the curriculum laughtfollows the areas prescrfbed by law for state schools. en the basls it is cortsid8rgd ess8ntial for a successful $￿Iety. Consequently, its provisicm Is lo benefit the public. The school is open lo all and Governors aim to make il as affordabl8 as reasonably posslble, nsislenl with the alm of providing a higwualily education in a small sehool environrnent. • During the last y8ar, the school awarded bufsarles lo elght pupils which covered 15YD to 100% of their faes. Tho school also has a Bursary Fund from which awards ware made at the discrellon Df the Govern￿5. The Fund and the school's Bursary Policy were advertised on the school's webslte. + During ihe last year, the school also grant6d hardshlp awards to three pupils whieh covered 65% to 100Yo off8&s. GOVERNOR'S REPORT (including a Strategic Report) For the year ended 31 August 2023 Public beneflt (continued) The Head also operat8s a fund to assist puw'ls from less wellryoff families with support for educational assessment, music lessons, resldenlial trips and uniform. As part of the commitment to promoting education the school also provldes training for teachers of around £11,000 for the yèar. Providing teachers with addition21 skills, who in turn will use these sklns at The Cavendish School or other schools, Is for the benefit of the wlder publlc. We work in partnarship wth maintained schools with Ihelr pupils attending our Anti-Bullying Week. Lunar New Year celebration, STEAM week Royal Institution Science in Schools event and Careers Week with parent presenters. and competing in our sports lounaments. We have also had the mathematics lead from one of th8 schools visit us lo provide training to our leachlng members of staff on mastery mathematics. In the ypar ahead, our Co-currrcular and Parnerships Cowordinator is looking to further expand our partnership prograrnme by working with local schools to create music and dance1È8rning opportunities. • We also provide work experlance opportunities to Schoolwaged pupiE8. + Since May 2022, a Ukrainian group has been using thè school's premlses for ils regular meglings that Inform, support and advocate for refugee families in Caméen. Chlldren play while adults and their hosts are helped with medical, Job and housing advice. The Cavendish also has 8 long-standing collaboration with the Inslilule of Education. the oducation school of University College London, which specialises in poslgraduale study and research in the fleld of education. Students are usually offered work placements duriro the school year, providlng opportunities lo observe, make ass&ssmenls. assist and leach, completè tasks and to engage in reffeclive discussion. In addition, they are provided with advice and support in relation to the planning, preparation and assessment of children and the management of behaviour. • As part of th8 educatlonal goal of goo(J Gllizenship, th8 school's pupils and their familles are encouraged and enabled to take an Interest in local and national issues. As a prartlcal consequenee of this, the school's pupils raised funds for a range of local and national charities during the year. Vve estimate that the value of these aclKsns is approximatew £80,000. equivalent lo ar￿nd 2Yo of the total rgvenues of the school. GOVERNOR'S REPORT (including a Strategic Report) For the year ended 31 August 2023 STRATEGIC REPORT Govornance, structure and management Governance The Board of Governors is responsible for setting aims and agreeing on a strategy for the school. recruiting and assessing sensor management and for ensuring frameworks exist to me&t legal, financial and regulatory obligations. Management olthe school Is the responslbilily ef the Head and the leadershlp team. The school has a rolling programme for reviewing procedures and policies. All are reviewed at least once every three years or more frequently should changes in legislation or circumstance r6quire. The Governors would like lo express their thanks to the Head, S&nior Leade￿hIP Team and the entire staff for thtsir hard work during the year. for the progress that has bèen made in the school during the period. The Governors also thar)k the parents and carers who contribute so willingly and generously to the life of the school and all the officers of the Friends of the Cavendish Isee later). + Govenjors The following officers served throughout the year, except wh&re shown.. Govemors AppointedlResi ned S Bettison B Crystal D Phillips G Fontaine AMGotto K Hake E Molnar A Pangonis N Rushton E Saudi A Tsoi M Webster Resigned 19 September 2023 Appoint8d 26 September 2022 Secretary S Chen Cooper GOVERNOR'S REPORT (including a Strategic Report) For the year ended 31 August 2023 STRATEGIC REPORT (continued) Governance, structure and managem&nl Iconlinuedl None of the Governors ro¢eived any remuneration in respect of Ih8ir servic8s as gov8mors dLJring the year12022 £nil}. No oul-of-pocket expenses were relmbursed lo three Govemors during the year12022- £274). Four (2022 three) Govgrnors who are also parents had children attending the school during the financial year. Fees paid by the Govemors aro the same as fees pald by others. At the year4nd, the School was owed £nil12022.' £nill by any Governor. The school has purchased insurance to protect the school from Ioss arising frorn the neglect or defaults of its Governors. The insurance premium payable by the school during the year totalled £1,122 {2022- £1,020) and provid&s cover of up to a maximum of £2 milllon. Appointfftent ofGovernors and training procedures New Govemors are elected by a consensus of existing Govemors ané may servo for a period of three years before being required lo sland for re.election. The Governors have pul in pkcs a system whereby individual Governors have nomlnaled links with individual teach@rs and curriculum areas to enhance the links be￿een Govemors and the teachlng staff and with the responsibility for Early Years Foundation Stage {E.Y.F.S.I, saf8guarding, health and safety and compliance. The Govemors are members of th8 As8ocSation of Governing Bodies of Independent Schools. The Governors are offered the opportunity lo allend seminars and cgnferen¢es and regular training lo mainlaln their expertise In govemance Issues. • Key management personnel The Governors consider that they, together with the Head and the Sensor Leadershlp Team, comprise the key management of the charity in charge of directing and controlling, running and operating the school on a d8y-tOwd8y basis. The r&muneralion of key managemènt personnel is set by the Finance and General Purposes Committee acting as th8 Pay Review Commltte¢ and is confirmed by th8 Goveming Body. Note Is tsken of mark8t condillons, national and local pay scales and levels of perfomianca. The Head and the Bursar have annual reviews where their targets are ag￿ed uponlreviewed with Govemors. The rest of the Senior Leadership Team has biennial performance revSews where Ihelr largel3 are agreed uponlrevlewèd with the Head. GOVERNOR'S REPORT (including a Strategic Report) For the year ended 31 August 2023 STRATEGIC REPORT Iconlinuedl Governance, structure and managèment Iconlinu@dl The Senior Leadershlp Team conslsts of.. T Lombard R Pritchett H Edwards J Hodgson S Chen Cooper Head Assistant Head & Head of Expr85SiV8 Arts Deputy Head IAcad8micl Deputy Head (Paslorall Bursar & Clerk to the Governors Commlttees The general school governance continued with regular Board and sub-committee meetings. The composition of the sub-committees for this year was as follows.. Edu¢ation FFnan¢e & General Purposes S Bellison G Fontaine K Hake A Tsoi M Webst&r (Chair} B Crystal (Chair, appointed 23 May 2023) E Molnar D Philllps ICh81r, resSgned on 23 May 2023) The two Co•Chairs of Govemors are ex4Acio members of both committees. statement of Governors. responslbilities The Govemors {who are also directors of The Cavendish School Charitable Trust for the purposes ol company law and trustees for the purposes of charity law) are responsible for preparing the Govemors, report. tha strategic report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practlcel. Company law requires the Governors to prepare financial stslements for ea¢h financial yearwhich give a true and fair view of the state of affairs of the charitable company and of the incoming resources and appllcallon of resources, Includlng the Incom? and exper￿¢ture, of the charitabl& company for that period. Under cornpany law, the (k)vernors must not approve the financial statements unless they are 5a115fied that they give a true and falr view of the slate of affairs of the charitable company and of the incoming resources and applicatlon of resources, induding the income and expenditure. of the charitable company for that period. GOVERNOR'S REPORT (including a Strategic Report) For the year ended 31 August 2023 STRATEGIC REPORT Iconlinuodl Governance, structure and management Icontinuadl In pr6parlng these financial slalemenls, the Governors are required to= • select suitable accounting policie8 and then apply them ¢onsistenlty', • DbseNg the methods and principles of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their financial slalements in accordance with the Finanoial Reporting Standard appliGable in the United Kingdom and Republic of Ireland IFRS 102)., + make Iwlgements and estimates that are reasonable and prudant; + sts18 whether applicable United Kingdom Accounting Stsndards have b86n followed, subl&cl lo any material dopartures dlsclosed and explained in the financlal stalement8,' and prepare Ihefinancial 8tatemenls on the going concern bosis unless il is inappropriate lo presume that the charitable company wlll continue in operation. The Governors are responsibl@ fr￿ keeping proper 8ccounling records Ihatdiselose with reasonable acGuracy al any lime th@ financlal position of the charitable company and enable them lo ensure that the financial slalemenls comply wlth the Gompanles Act 2006. They are also responslble for s?feguarding the assets of the charitable company and hence for taking reas(￿able steps for Ihe prevention ar￿ detectton of fr2ud and other irregularities. Each of the Governors confirms that- • so far as the Govemor is aware, there Is no relevant audlt information of which th8 charitable company's auditor 1$ unaware- and • Th@ Governor has taken all the steps that he/she ought to have taker) as a Governor in order lo make himselllherself aware of any relevant audit information and lo establish that the charitable company's auditor is aware of that information. This confimation is given and should bg interpreted in accordance wllh the provlslon8 of s418 of the Companies Act 2006. The Governors are responsible for th& maintenance and integrity of the financial information included on the ¢harilable company's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statsments may differ from legislation in other jurisdiclSons. GOVERNOR'S REPORT (including a Strategic Report) For the year ended 31 August 2023 STRATEGIC REPORT {contlnuedl Governance, structure and management Icontinuedl + W in respect of total bursaries. Expenditure was £3.661,75612022- £3.459.706}. Expenditure includes £2,584,94012022- £2,403.280} Sn respect of staff costs: £18,830 {2022- £22,076) for interest on the bank loans and £161.33é12022-£170,989} in respect of depreciation charges. The net income for the year was £250,22812022- £162,157). Rese￿e$ policy The GovernoTS have examined the requirement for free reserves {also refèrred to as the general fund). i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The Governors consider that, given the nature of the school's work, the level of free reserves should be equivalent to the lgrmly expenditure at 8ny one time. Based on Gurrent expenditure levels this shouSd be in the region of £1,200,000. The Govemors believe that this level of reserves would provide SLrficient flexibility to respond to unforeseen emergencies whilst specific action plans are implemented. In addition. the school retains a healthy Gash reserve that is Capable of meeting anliclpated future li8bllllies. Financial position The balance sheet shows total funds of £5,324,875. The tangible frx8d assets fund of£3.660,173 represents the net bcrf)k value ofthè school's tangiblefixed ass8ls less the related borrowings. General funds of the school at 31 August 2023 are £1.530,866 and the Head's Discretionary fvnd was £5.430. Overall, the Governors Consider the affairs of the school lo be satisfactory but they are aware of the need to monitor ils resources closely: the potential financial and polillcal issues facing independent schools,. and the naed lo constsntly monitor budgets and forecasts. Fixed assets The main asset of the school Is the Ireehold building. Acquisitions and disEM)sals of fixed assets durlng the year are recorded in the notes to the financial statements. Summary The 2022-2023 financlal year saw a marginal improvement in trading condittons for the school. The School ended the year with a surplus of £250k and a cash balance of £2.7m. Incorne increased by 8Vo year-Dn.year. This was primari￿ driven by a small increase in average pupil number8 from 211 to 215 and a 5.6% Increase in fees, below inflation. Costs Increased by 5.80/0. reflecting the inflationary environment across both salarigs and other costs. 12 GOVERNOR'S REPORT (including a Strategic Report) For the year ended 31 August 2023 STRATEGIC REPORT IcDnlinuvdl Financial revlew {continuedl In the Autumn Term of 2022, the BDar(I made a one-off increase in the salary scales of certain staff categories to ensure they did not fall behind the recently agreed levels of pay in the m21nt8ined Sector and lo support those members of staff on the lowest incorNes, noting the material In￿eaSe in the cost of Ilving. A Board sub-commlttee was then formed to review th@ Dverall salary sliucture for all staff. This review led to differentiated salary increases for different scales and staff categories in order lo better align staff pay with the markel. The Board established a pay policy lo seek lo mainlain a small premium to comparable salaries in the maintained sector. The ongoing elevated level of UK inflation continues lo presenl challenges for the School. For exarllple. significant increases in thè cost of living could cause some families to reassess household expen¢Jilure, and while the School's energy pricÈs are largely fixed until late 2024. its costs have risen materlally in olh&r areas. Teaching salaries are subject lo an inflatlonary environmènt and we note the Government's pay settlement in Summer 2023 to increase salaries in the maintained Sector by an average of 6.5Q/o. The proposed removal of business rale relief for Charities represents a signrficanl future headwind at an &slimated additional cost of£160k a year. There has been a lot of Coverage in the media of the risk of VAT being applied to school fees. and Ihe polenllal loss of charitable ststus. depending on the outcome of the next electlon and the policy choices of ihg Govemment al Ihat lime. Should VAT be applied to school fees. there is a material risk lo pupil number5 at all fee-paying schools, as some parents land prospective parents) may consider alternative options lo fee-paying schools. This risk ts compounded by the ongoing cost of living crisis. C8sh levels are continuously monitored, and the School en5ure5 at least a 18rm's worth of ex￿nditUreS is readily available. This yearthe Board elecltsd to take advantage of higher interest rates and increased to £1.2m the amount of surplus cash in three separate savings facilities with welkknown UK banks, increasing our interest income considgrabty. The Board remains focused on managing these challenges and m8intsining a disciplined and prudent approach lo financial management. The Board is very conscious of the risks lo pupil numbers across the sector and is CDnsidering a number of scenariog as it plans for the years ahead. The School is fortunate to have material cash resBrves as this p&riod of uncertainty continues. Acknowledgèment The Governors would like lo express their thanks lo those Cavendish leavers who generously donated their deposits to the School's Bursary Fund. Future plans The Head has continued to bring a huge amount of energy lo the school, introducing many new inilialives and being very successful in bringing parents, staff and Governors along with her in the implementation of new ideas and processes. A new Senior Deputy Head (Strategy & Operations) stsrted in S6ptÈmber 2023 and has made an immediat8 and vary positive ifflpact on the life of the School. 13 GOVERNOR'S REPORT (including a Strategic Report) For the year ended 31 August 2023 STRATEGIC REPORT Icontinuedl Future plans Icontinuedl Numbers were strong forthe academic year 2022f2023. However, the GoverTrors are very aware of the fin?ncTal challenges that lie ahgad. Although numbers from Reception upwards 8fe healthy, numbers in the Nursery are lower than expected, as are overall inquiries. There ES no doubl that a major causa of Éhis is untsrtalnty as to the potential incrèase in fees should a Labour govemment tt elected and impose VATon sGhool feÈ$, coupled with the ongoing ¢ost of livin9 crisis. As a result, more parents are onsidering the state sectorthan would previousty have done so. The Governors are acutely aware of the need lo hav¢ a ftnafKial plan in place to Enable the School to weather these challenges should thÈy grise. Given the School's healthy lavel of reseNes due to pnthnt financial managEmÈnL they are confident of meeting the going concem assumption. Thè Brand Strategy project mentioned in last year's rèport is now comp￿te, Including a complete re- working of the School's website to be muth more modwn. dynamic and navlgable. The Head and Admissions Officer worked very closgty together to 8chieve this excellent outcome, and social medi8 continu8S to be used very offectively lo increase the School's online presence and eyplolt marketing opwrtunthes. In a(Idrtlon, the Nurs8ry space has been wmpletely refurbighed. The Schoul will continue lo offer its broad and balanceé curriculum and lo provide numerous enrichment opportunities fo¥ pupils. indudins a wide varitty of during and after-school clubs and c¢)portunltks to play tewn sports. The Head hassucce5sfully developed strong felalionshipswilh the headsof8 broad rang8 of secondary schools and once again the school achieved excellent results in the 11+ this yè3r. The 4hi)0S's focus is always on its commitment to matohing Year 6 9lrts to the secgndary school most suitable for Ihem and where they wll be able to thrive. Govemorfs report (induding the strategiG rèport) approved by the Governors and signed on their behalf by-. AGDtto and N Ru¥hton Governors of The Caven(¥ish School Charilable Trust Company ￿gIStratIOn number 987480 (England and Wales) Approved by th6 Govemors on.. LS 14 INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF THE CAVENDISH SCHOOL CHARITABLE TRUST LIMITED For the year ended 31 August 2023 Opinion We have audited the flnancial statements of Th8 Cavgndish School Charitable Trust Limited ('Ihe Gompany'} forthe year e[￿ed 31 August 2023 which Comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the finan¢lal ststements. including significant accounting policies. The financial reportrng framework that has been appfied in their preparation is applioabl& law and Untted Kingdom Accounting Standards, including FRS 102'The Financial Reportlng standard Applicabl@ in the UK and Republlc of Ireland, {United Kingdom Generally Accopted Accounting Practice). In our oplnlon the financial statements- give a true and fair view of the stale of the tharitable company's affairs as al 31 August 2023 and of its incoming resources and applicatlon of resources, Including Ils Income and expenditur6, for the year then ended- have been properly prepared in accord8nce with United Kingdom Generally Accepted Accounting Practice., 8nd have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinlon Vve conducted our audll in accordance with International Standards on Auditing IUKI IISAS {UKII and applicable law. Our responsibilities under those standards are further described in the Audito¢s Responsibilities for the audit of the financial slalemonls section of OLJr report. We aro Independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financi81 statements in the UK, including the FRC'S Ethical St8fKlard, and we have fulfilled our other ethical responsibilities in a¢¢ordance with these requirements. We believe that the 8udil evidence we havg obtsined is sufficient and appropriate lo provide a basis for our opinion. on¢luslons relating to going concorn In auditing the financial statements, we have concluded that the trustees, use of the going concern basls of a¢¢ounting in the preparation of th$ financial statements is appropriate. Based on the work we have performed. we have not Identified any material unc8rtainlies relating lo evenls or conditions that, individually or collectively, may cast significant doubt on the charitable company's abllily to continue as a golng concem for a wriod of at least twelve months from when the financial slalements are authorised for issue. Our resprjnsibilities and th8 responsibilities of the Iru51ees with resp8Ct lo going concern are described in the relevant sections of this report. other Infomiatlon The other information comprises th8 information included in the annual rgport, other than the financial statemènts and our auditor's report thereon. The trustees are reSFX)nsible for Ihe other information contained wlthin the 8nnual report. Our opinion on the financial statements does not cover the other 15 INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF THE CAVENDISH SCHOOL CHARITABLE TRUST LIMITED For the year ended 31 August 2023 information and, except to the exlenl otherwise explicitly staled in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether Ihg other informalion Is materially inconsistent with the financial slalem8nls or our knowledge obtained in the course of the audit or otherwise appears lo be materially mSsstaled. If we idèntify such material inconsistencies or apparent malerlal mlsststements, we are required to determine whether there is a material misslalement in the financial slalements themselves. If, based on the work we have perfomied. we conclude that there is a material misstalemenl of this other information, we are required lo report that fact. We have nothlng to report in this regard. Opinion$ on other matters prescrlbed by tho Compan1•$ Act 2006 In our opinion, based on the work undertak&n In Iha ¢ourse of the audit.. the information glven in the strategic report and the governors, annual report fDr the financial yearfor which the financial staltrmènts are prepared is consistent with the financial statements., and th8 strategi¢ report and th& govemors, annual rèport have been prepared in accordance with applicabl818gal r8quir8menls. Matters on which we are requlred to report by exceptlon In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit. we have nDI identified matèri81 misstatements in the strategic report or the governors. annual report. We have nothing to report in respect of thè following mattets W￿re the Companies Act 2006 requires us to report to you if. in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have noi been received from branches not visited by us., or the financial statements 8re not in agreerllent with the accounting records and retums; or certaln dlsclosures of trustees. remuneration specified by law are not made., or we have not received all the information and explanallons we requlre for our audlt. Responsibillties of trustees As explained more fully in the governors, responsibilities statement set out on page Ixl, th8 trustee8 (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial ststements and for being satisfied that they give a true and fair view, and for suoh intemal control as the Iruslees determine is necessary to enable the preparation of financial statements that are fr8è from Mate￿al mlsstal8ment, whethèr due to fraud or error. In preparlng the financial statements. the trustees are responslble lor assessing thè eharilable company's ability lo continue as a going concem, disclosing. as applicable. matters related to going 16 INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF THE CAVENDISH SCHOOL CHARITABLE TRUST LIMITED For the year ended 31 August 2023 concem and using the going concern basi8 of accounting unless the trustees either intend lo liquidate the tharitable company or lo cea8e operations, or havg no realistic alternallve but to do so. Auditorfs Responsibilitigs for the audlt of the financial statements Our objectives are to obtsln reasonable assurance aLKJul wholher the financial slalements as a whole are free from material misstatement, whether due to fraud or error. and to issue an audhor's report that includes our opinion. Ra8s0nable assurance is a high level of assuranGe, but is not a guarantee that an audit conducted in acCOrda￿e with ISAS IUKI will always det8cI a material misslalementwhen It exlsls. Misstatements can arise from fraud or error and are consid@r6d material if, individually or in aggregate. they Could reasonably b8 expeoled to influence the e¢￿0M1¢ decisions of users taken Dn the basis of Ihe8e financial stslements. As part of an audll Sn accordanc& with ISAS IUKI we exercise profession81 judg8ment and maintaln professional scepliciswn throughout the aLKIII. We al¥o'. Identify and assèss the risks of material misststement of the financial slatemenls, whether due to fraud or error, dèsign and p@rform audit procedures responsive to those risks, and obtaln audit &V￿enCe that Is sufficient and appropriate lo provid8 a basis for our opinion. The risk of not detècting a material misslalèm¢nt resulting from fraud is higher than lor one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of intsmal control relevant to the audll in order to design audit procedures that are appropriate In the circumstances, bul not for the purpose8 of expressing an opinion on the effectiveness of the charitable Gompany's internal control. Evaluate the appropriateness of accounting policies ussd and the reasonableness of ac¢ounling estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going ¢oncem basis of accounllng and, based on the audit evidence obtained, whether a material uncertainty exists relal&d to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concem. If we conclude that a material uncertainly exisls. we are required to draw allenlion in our auditor'5 report to the related disclosu￿S in the financial ststements or, if Such disclosures are inadequato, lo rnodify our opinion. Our conclusions are based on the audit evidence obtained up to the dale of our auditor's report. However, lulure evenl8 or conditions may cause the tharitable ¢ompany to cease to Gonllnue as a golng concem. Evaluate the overall presentstion, 81ruct4Jre and ¢onlenl of the flnancl81 statemènts, including the disclosures, and whelherthefinancial stalern8nts repre8entthè underlying transactions and events In a manner that achieves fair presgntstion. We communi¢ale with Ih03e charged with governance regarding, among other matters, the planned scope and tin7ing of the audit and significant audit findings. including any significant deficiencies in internal ¢ontrol Ihal we idenllfy during our audit. 17 INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF THE CAVENDISH SCHOOL CHARITABLE TRUST LIMITED For the year ended 31 August 2023 ExplanatÉon a$ to what èxtont thg audit wa$ consldered ¢apablo of dèt•¢ting irregularitSes, Including fraud Irregularities, Includlng fraud, a￿ instances of non-compliance wlth laws and regulations. We desSgn procedures in line with our responsibilities, outlined above, lo delect material misstatements in respect of irregularities, including fraud. The extent to which our procedure5 are capable of detecting irregularflles. including frautj Ss detalled below. The objectives of our audit in respect of fraud, are,. to identify and assess the risks of material misstatement of the financial statements due lo fraud- lo obtain 8Lrfftcienl appropriate audit evidence arding the assessed risks of material misslalement due lo fraud. through designing and implementing appropriate responses to those assessed risks,. and lo respond appropriately lo instances of fraud or suspected fraud identified during the audit. How8v8r, the wimary r8sponsibility for th8 prevention and detection of fraud rests with both management and those charged with govemance of the charilabla company. Our apFwach was as follows.. We obtained an understanding of legal and regulatory requirements applKable to the haritsble company and considered that the most significant aro the Companies Act 2006, the Charities Act 2011. the Charlty SORP. and UK firbancial retx>rting stsndards as issued by the Financial Reporting Council We obtained an understanding of how the charitable company complies with these requ1￿ments by discussions with management and th089 charged with govemance. We assessed tha risk of material misstatement of the financial ststements, incIL￿l￿g the risk of material misstatement due lo fraud and how it might ctcur. by holding discussions with managamenl and those charged with governance. We inquired of management and those charged with govemance as lo any known instances of non-compliance or suspected non-compliance with laws and regulations. Based on this understsnlllng, we designed specific appropriatè audit proceduras to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative 8vid8nce as required. There are Inh&renl IlmStalions In the audit procedures described above. We areloss lik&ly to becomè aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not delecling a material misstslement due to fraud is higher than the risk of not delecling one resulting from error. as fraud may involve deliberate concealment by, for example, forgery or intention81 misrepresentstions, or through collusion. 18 INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF THE CAVENDISH SCHOOL CHARITABLE TRUST LIMITED For the year ended 31 August 2023 Use of our report This report is Made solely lo the charllable company's members, as a body. in accordancG with Chapter 3 of Part 16 of the Cornpanies Act 2006. Our audit work has been undertaken so that we mlght slate to the company's members those mallers w8 are required to slate lo them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not ac￿p1 or assume responsibility to 8ny paty other than the chadtsble company and charllable company's members as a body, for our audlt work. for this report. or for th@ opinions we have formed. Li¥￿j510>) &tL LLP 8 January 2024 Shivani Kothari (Senior Slalulory Audilorl for and on behaw of Moore Kingston Smith LLP, Statutory Auditor 6th Floor 9 Appold Str88t London EC2A 2AP 19 The Cavendish School Charitable Trust Limited STATEMENT OF FINANCIAL ACTIVITIES Ilncludlng the Incorne and gxpendituro statement) for the ar ended 31 Au ust 2023 Unre5trfcledl Designated fun(ts Restricl8d fLmds Total 2023 Total 2022 Notas INCOME FROM.. Chariiabfe A¢¢ivltle5 School lees Olhar edLKalh?nd incarne otherlncomo Other trading income othsr acllvib-es Investments Inve5tmani Incom? Voluntsry$aurces Granls and donattons 3A75.262 228,637 3,634 3.578.896 3,353,895 228,637 199,409 25,186 3,108 25,166 3,IOB 40,67S 3,233 50,558 9.257 16.362 25,619 23,581 Total Incoth8 and frN¢owment5 3,891,988 19.996 3.911,984 3.621.863 ExpeMDITURE ON.. costs of r¥i$ing funds IJ)terest and olhercosis 18,830 I6￿30 22,076 Charltatsle a¢llvitlts Edu¢allon 3.630.326 12,800 3.642.926 3,437.630 Total txpandlture 3.649,15e 12.600 3 459.708 Net op•ratlng Imcomell8xpendhur$l 242.832 7.396 250.228 162.157 Ngt Itmmollexpendltum) 242,832 7.396 250,228 162.157 Transf¥ b8iw8en funds Net mOV8m•nt In fiJnd5 241832 7,396 250.228 162.157 Fund b818nces broughl ftsNard 5,037,$96 37.051 S.074 647 4.912.490 F￿d balances¢*rfed foNJa 18, 19 5.280,428 44,447 5,324B75 5,074,647 slalemen¢ c*financ￿l a¢Uvillos iDctudBS all gains and k*eG in tho y88r and thergfore a stalemanl of totol racagniBed gakns lossas h&s not beèn prépared. lorthe above Bfflounls rdat& io COn￿nu1ng activille8. The fjcr*)Nyn￿ny notes form part ofthe8efiwnryia1 $taL￿8n{S. Page 2 The Cavendish School Charitable Trust Limited BALAN¢E SHEET asat31Au ust 2023 2D22 FIXED ASSETS TarvJib18 a5sels oy 4.072,922 4,169.530 CURRENT ASSETS Debtors Cash 81 bankand th han6 14 123A62 113.377 2,728,202 2,587.042 2.70D,41B CRÉOIYORS.. AmouDtstslkng due*l*hln owy8 I94B,(￿lI Ner CURRENT ASSETS 202$ 068 17$2 358 TOTALASSEf8 LESS CU51RENfLIABILmES CREDITORS.. Amoun*faI￿9 duo*Frn0￿thafi on6 year 6.0St.99D 5,921,895 In4116) 1847249) 16 NET AS5Ers FUNDS Restri¢t¢d F¥TrJs UnFe5tr1cbd Funds-s?￿RI Head's DISC￿u0n4ryFW￿S H4Td3hip Fund TangIb￿ FlxedAstet Fund 19 fg 44,447 1.630.866 37,051 128B,199 5,240 83.959 3MO.198 18 18 1660,fn 24*76 &074ts17 Apwov8d arvj aUtfthSedfori￿￿ bythp 8oHrd•fGovemors on..._ ... . *nBd onthetrb2h8￿ty. A GGttoand t4 Rusmon G0VemD￿ ofTh$ Cavonéi5ttS¢hool Ch8rlt4bl8 TnJ81 ompanyre91siralion number 987480 IEn9l*d and INAksl The aGcomp8nfvgnole5 fatrn Part oflhese ffn¥nc42r$ts￿rn¢D18. P8ge21 The Cavendish School Charitable Trust Limited CASHFLOW STATEMENT for the ar ended 31 Au ust 2023 CASH FLOW STATEMENT Nol8S 2023 2022 Nel cash inlbwfrom operallng gclivibe$ 23 250.743 430.660 Cash lows from ￿vestiNg actprities.. Bsnk interesl recaved Paym9nts to ècquire fixed assèts 50,55B 1fj5.72DI 1,070 150,1931 Nel ¢¥$h outnow fr(*n InveS￿n9 acllvllles 49.123 Financing.. Loans rewad Inlarésl rèpald 175.5911 118,8301 172.6371 22.0761 Nèt (*sh oulllowfrom financiny activll*S 9(421 Inueaselliserreasel in cash 141.16Q 286.824 C8sh 8nd cesh egulvalents &1 the ginning ofihe reporting period 2,587,042 2.300.218 Cash and cash équivalènts Èt thè end tsft￿ reportiry PWtod 2 728 202 2.587.042 Page 22 The Cavendish School Charitable Trust Limited ACCOUNTING POLICIES for the ar ended 31 Au ust 2023 1 ACCOUNTING POLICIES The cavendish SGhod Charilabl? TN8tLimlW ￿ a compary Imiled by guarante8 wllh reglstered numbar 987480. IrKorporated arNI I*)m￿lad In EnglaNI and W81es. Its ieg16tergd offKe is The C8vendlsh School, 31 I￿V&M0$S Str801. LNdon, IWI 7H8. 1.1 BASIS OF PREPARATION Tho financial Ètaiemnls h8V8 been prep8rEd In aN￿￿ance VAlh the Financlal Repor￿n9 Slandard applicable in th8 UK and Republic ol Irela￿ (FR$ 1021. The Charilablfr Company 1$ a publ￿ benèfit Èntity for W￿0565 of PRS 102 4nd th6rètoro te Chadty also prepared its f￿an0185 $latements in eccord8nc* wilh ihe Slaterrent of Rery)mm9￿d0d Praclke 8ppllc8bla 10 charities preparing Iheir attounts In accord¥r￿ with the Financial Reportin9 Siandard applcable thè UK and Republic of Irekgnd (Thè FRS 102 Chariiios SORPI, Iha CompanIe&Act2(￿6 and ttw Charill88 PLI 2011. The financial Stat￿entS are prepawed In stsrliw, whkh Is th¢ fijnctionl ￿rr￿rKY of the charity. Monetary am￿nts In these flnanci81 slalements are rounded to th8 naar68tpound. Those fin8n¢lal slalemenl$ are prepared on thè yoin9 concern basis, under th£ h1storic￿ ty)$l Mnverfon 8$ mr%Jified by the revaluallon Of Investments and ￿ accDrdance wllh ihe Camp8nies Act 2006 and aPpi￿abl• ￿t￿ntIng standards in trte United Kln9dom. The prindpal 8C(x)unting Pol￿1￿$. whlch have been tonsisienitytkrtughDul the￿ar. 8r8 5eioui bkn. 1.2 GQING CONCERN The Irualaas hav6 assessed whether the use of the wng con¢ém awrrvllon 1$ epproprial? in prep8rfng these f￿a￿LI￿1 ststsrnents. Th8 Iru8t8ès have m￿* th18 assessment In regp9Ct to a PeriL￿ of frorn Ihè datè of appmal of Ihe79 financial 51atsTnents. The sclK)ol is dbpendtsnl on pupfts applOng to it on parents to pay Ihair fe•$. Lon9 tem forecaBlhg of pupil numbers1 difficult butwork conlinufrs 10 ral* tho yoffle of Ihe school and kn malntaSn and enhwce the relatlvnshlp$ wllh parenls, fBedew schcols and nurseries and destination SGhwl¥. The school has produced forec35ts Idr at leasi 12 months from the date LY approval of IhB5e financi31 stalerrEnlB whkh show that tho schcd Mlll havè surriC￿nt fijnds lo rontknue operating as a golny conc8m. As such S￿h￿l (*n axpÈci to ba ab￿ to m88t its Ilatiitlos as thwJf011dutr in th6 perknd of al least 12 months fr(￿ the dale ofapproval oflhe5e accounts. HowevEr, there can be certainly to Ihese mauers. Dn this bas58 Governors hove Gon¢￿ded Ih81 thè Sehool18 a gcing concern. The finandal statements do not InchJde ￿Y Yjuylmenls Ih8iwould ra$￿1 Irom tho SchcpDI not being Bble to meèt ts l&bihlle$ 88 fvyfrall duè. 1.3 COMPANY LIMITED BYQUARANTEE Thè comp8nyls Ilmiled byguar8nlee, the gu*antors al tha preswltlme being lh2 Govwn¢r& tothe exlenl of£18ach. 1.4 FEES RECEJVABLE AND SIMILAR INCOfvE Foes receivable and tharges for servlces and usa of p￿lse$ gre accounted ftr in Ihe period in whiGh the s8Thlce Is pmided, F￿8 r8ceivabl8 8f8 slated afterdeducuny allowancÈs, scholarshlps and other remlssions wan18d bythe schod. 1.5 DONATIONS AND FUND ACCOUNThNG Donallon5 recwved lor the gglleral purpose$ of the $cthol h%lDdad as unre¥trl¢¢Ed funds. Donalhx)s re5trkled by TrA4sh8s of m8 donor or the ierm$ of an appe812re laken lo reslrKled funds. Donauons required ID be retsined as capital In accordonce with thè donorfs wlshes are accounted for a5 endowm8nls- permanent or Èxwndable according to the nature of e ￿$trICtIon. 1.6 EXPENDITURE Expendliurels allocatsd to ayoens& headlngs. which aggrefv all wsls relallng to Ihè tAlepry elthw on a direot ¢o$l ba855, or 8PPOrtloned accDr(lry to timtr sptnl. 2bilitie$ ar8 recognls8d 85 soon a5 IhÈrè is a ￿081 or conslructivg obllg8tiOn commlttln9 the schoal to mak8 a paymeni to a Ihird party, it is probable that a Ironsfer of econcThiG benafits Ylll be required in settlemertand Ihe amount of the obllggtion can be rneasured reliably. Ml expendrtura Is ac¢ounted for on an aecruals basis and includes any atlribulable VAT whth ¢8nnol b• racovered. All 8xp8nse5 are olk)¢atÈd or 8pport(oned lo Ihe appI￿#ble &xp8n(Jiiur9 hÈadlng& Expenditure charftsblo a¢￿V1h£S comprisps ¢xpandllure on the wovision Or￿LatI￿. Covèmance costs compri4e the ¢051s Df runniry thè Trusl, Includlng strategic planniro for ilg lulura dev61opff£nt, @xtem audit, and allolhercosts DI cornplwng vAlh ￿$t￿Ul10n9l and $tatuW16quirements. Page 23 The Cavendish School Charitable Trust Limited ACCOUNTING POLICIES for the ar Ènded 31 Au ust 2023 1.7 TEACHING COSTS Th8 cost of teaching 4nd sUPPOrt staff sAlgrf8s. Includlnu pen$bn and nallongl insvrance cosis. bDok5, olher iuitb?n exgens6s and IT supsX)rt. 1.8 FIXEO ASSETS AND DEPRE¢￿TION l fix*d a65et8 are u$ed in dlracl furtherdnc2 of the s¢hool's objÈtttives. Flxèd asgels are ineluded in Ihese finonci stalern8nts alth$irorigind cost less dap[e￿at￿On and accumulated unpalrmenl losses provlded tv date. Assois th2tare expocled to have a usefiA emnomlc life olJB55 ih8n on¢ yearand c08t less than £2,000 are rnt¢apitd's8d and ¢ ￿tten off ￿ the year ofpurchasB. Fre8hoW prowrtyis d8txeclalad ai a r8te of 2% p8r annum on a slralght-line basis n order lo write (he bulldings off ¢werthÈir Éslimaled useful eGonomlc Twes to the sch(KL CBrtaln Improv¢ments to propetyare depr8ciated on a slrai9ht.line bsts￿ ordwio¥rrite off tha costs overa period offiftg8n Jears. DFpr£cialion L8 provided on au tangib￿ fixed assets, other th8n ftsehokl bnd. al rale5 cakulated to write off the ￿$1$1￿$5 esUm8led re?￿U81 Wak￿ of each asset, by wual 8nwal instalmenls, over their expected useful livès whlch afè CDns1de￿d to be.. Fumilure and general office equipm£nt comput$r￿ IT PlaNJ -10 ytrars -3 years -30 years 10%-20Yo per*num based on tosl 39.3% p#rannum based on cost 3.33% per8nnJm based on ¢0sl cost of fr*hald property rèpreseni¥ the historical v81ue recorded In thè bDok5 of £5.849,407. The board are of Ihe opinlon that the current value of the 5chool's1ond and bullding Is Substantially inexee8s of ￿fVjUre slknyn in Ihe financiBI $t8lem6n The buiklings have an insured value of £18,824.7151202l' £17,082,320). 1.9 PENSIONS Costs inclu0& nDtmal and supplèrnentary Contrfj￿tion$. Th6 regular co81 Is the nwmal conlributbn. expressed a& a percentrg& of salary of a 1&ac￿r newly èntering S￿1¢6. which would defray the w5t of ben8f*s pay2blÈ In r85pect of that ge[vI￿. V8riatiOnS from the regU￿r pe￿1¢n cost ?re met by a 5upplemeniary contribut￿jn. Th15 Occ￿r¥ if, 85 a resull of the luarlal InvEstigal￿n. li ￿ found that Ihe acGumulalat labllit40s for b$nefll8 10 past and prtsenlteathers are not ful￿￿0Vered I￿rMal contributions lo be pad In thè lulur8 by fund buill up from past conlrtbuliDll5. The norm41 and supplem8nlarycanthtutions are lothè income and expend11urea￿nt In year. From 1 Sèptember, the schaol pul In ￿acE 8 dgnned conlribuuon s¢hernE With AVIVAfor Ihe tsachlng slatr. The school also pays coniribulion$ Ihto a Group Personal Penslon Stheme for SuppDrt staff. Thè Schom¥ is a defifted conlribtsiion penslon scheme. Th8 8sse15 of the Scheme 8r8 held separaiely from those of the School In ath in¢Jepend9nUy sdministered fitnd. The Pension SGheme th8fge represents coniribullons p¥y8btè by the school kn a¢¢ordance with the rnles Dlthescheme. 1.10 LEASES AND HIRE PLIRCHASE CONTRACTS Where assets are financed by finance leg98s and hlrg pur¢hasè agreem8llts ￿ assets arè incknded In Iha Balance Sheet al cost les5 d•preGlalion in a¢cur(lance with the School's nortnal accounting poliw. Th8 present value of fuLure renh8ls is Shown as a f*tylllly. The inleiesi domenl of rental obligations ts charged ¢othe Statement of Ananclal over the ptrriod of Ihe ose in proporbon to th8 balance of capital payments outstanding. Rentals paid underoporaiing le88•s *e rharged to Ihèstatemenlof FlnanGial ACt￿￿'e$ ev8nlyoverthe perlod of the ￿056. 1.11 CASH AND CASH EQUIVNLENTS Cash and cash equivalent$ ￿Clude c&sh In hantt. dep)sHs held at call ￿tkn banks, other shart-lerm Ilquid inveslments original maturities of three months orless. 1.12 FINANCIAL INSTRUMENTS The wmpany ha$ elected to apply the provisio￿ of Se¢ikJn 11 'Ba5ic FlnanGvl I￿truMe￿ts, and Seclion 12 Thhor FlhancL41 In8lruments 155ues' ol FRS 102 lo all of ils fkn8r¢ial instrunents. Financial Instrthrenis are reco9nisèd in the company's an¢e sheet wh8n t￿ comwyb8¢gtne5 P8rty lo thè contractual PFJViSiDns c* the Insliumenl. Financial assets and Irdbillies arè offset. wllh ihe net 8mounts pre$enled In th8 financial stalèments, when thorè i& a legally tsnforceable d9hl to set olf the ognlsed amount$ snd there is an Intontion to gellk on a nel basls or to reaise thè a55el and setu8 Ihe Ilability slmultanpousty. Wikn the ￿KePtI￿n5 of prepayments and deferr8d income 811 othgr debtor and crÉdlor b&L8Th￿S are ￿¥￿idered to be basic ffnand81 Inslrument8 under FRS 102. S£e wte5 14. 15 and 16 fortho debtor credltor notes. Page 24 The Cavendish School Charitable Trust Limited ACCOUNTING POLICIES for tha èar andèd 31 Au st 2023 1.13 TAXATIQN The companyls a reolstered ch￿tY arKI Is exempl Ir(Mn taxalon 88 8fforded by Seclon 505 ICTA 19S8. 1.14 EMPLOYEE &ENEFITS costs Ofs￿rt4e[rn em￿￿86 bèn&ffts raoognr&ed aÈ É h'atilitygnd an èxp8mSO. 2 KEY ESTIMATES & JUWEMENTS In ihe ¥ppli¢allon of lh& ¢tympany* acCo￿tIng polklas, tha Councll Is reqtslréd to mak8 judgaments, 8$￿"Mat$S and assumpuons 8boui the Carr￿n9 amount of assets and liabilities that are mt roadily apparont from oihar wurce$. Th8 estsmales ano 8$50Tr8ted assumptions 8re based on Nstorl¢al experfence and other facth thatare conshlwed lo be relev8rt A¢iuJl ￿5VI￿ maydlfferfrom these e8lJmale8. The &sllm8tos and undertying asSumptior￿ are rtvEèwÈd on an On*￿n9 basls. Revi￿0￿$ to acwunllrt9 eStlrnal•s are recognlsed In th6 perlod In whlch th& esllmate Is r￿V￿ed. if iht revi81on affects enlyth81 p8thod, or In tha ￿0d ol the revlslon 8nd fuiure perfods If revlslon 8ftects both ¢urrent8nd fu￿re ￿(￿8. Irb the opinion ol lh• Coun¢ll of M8nag6mni, thè èstin8tes and assutriptityn$ whith have a $ignifitant rr4k of ￿sIng a n)aterf81 adluslmentts tha earrying #mount of 85sets and IlabiliUe5 are ouUlned bdow. errti¢alludgtmÉnts Uselul economi¢llvas The annual d8prtclallon chargè for woperty, pl2nl and equi￿￿1 is sensitNe to changes in the estimatod usotul econ0n￿C livas and residual valuBS of the 35sets. The useful economic lives and residual v21ues are re-as5e55ed annually. They amended when necesswy to reffecl current es11ma￿, based on tèchnological advancÈm8ni. ruluro invoslmenls. economic ulilisalSon and the physlcal ¢ondilion of the ass&ts. See th 12 for the Cat￿￿9 atnL¥Jnt of th8 ptDperty, pyant and 8qLlrmenl and note 1.8 forlhe useful ¢conc*nlc1fv68 f¢r e8ch ¢lassolas$at. P￿25 The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS forthe ar onded 31 Au ust 2023 3 FEE INCOME Thg SGhDoI's aGlivibeg 8rg carried outwtthin the UK. Schotsrs fee incorne comprEs8d'. 2023 2022 oss fees Less.. Bursaries paid for fIom restykledfvnds LoÈs'. Unrestricted bursaries 3.640,636 13.6341 IS&1081 3.39B,307 13,7121 130,7001 3,578,896 3.353 895 Included ￿th1Th Ihe 8boYfr an amount of£3,63412Q22.. £13,712) thkh18 8tsPWrtad tyre8kn¢ted income. 4 OTHER EDUCATIONAL INCOME 2023 2022 Extras and di4Wrsements RegislrallDll fees Other income 206,928 10.789 10.920 180.080 228,637 199,409 S OTHER TRADING INCOME 2023 2022 Reni and ￿111￿9$ Oth8rincom8 25,166 3,108 40.675 3,233 43.908 6 INVESTMENT INCOME 20YJ 2022 Ir4eresÉ receive 1,070 7 DONATIONS AND GRAIITS 2U23 2022 Drrtqlton$and grants 25.619 23.S81 25.619 23.58 JnGludwJ With￿ the 8bove is an amountof£ie,362 (2022.. £20.9711 vthich rel8te&to reEtrlcted hwne. Pagtr26 The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS for the ar ended 31 Au ust 2023 8 EXPENIMTiIRR lal Charttable expendlture st8ff Costs Inote 91 Taial 2023 Other DepretxatiDn Teaching Welfare Premi$e$ and Eslale$ Adminlslr8llon Finance Costs Govamancè 2,100,188 6.532 244.687 199,104 324.227 109,503 18.830 19.139 39,308 138¢,183 205,636 446,255 587,723 18.830 19,139 122,028 478,220 Total Charftablg Expendlture 2,584.940 915,490 161.336 1661.Y66 IrKlu¢￿ wltNn £4861,753 1$ 8n 8mtyJnl of£12,6W12022.. £416451 wlating to resbi¢18d oxpendllure. Charttablo pxpondlturo staff costs Inole 91 Tolel 2022 Other Depr8￿8tkn Te8ohsng Welfare Premises and EsLrt88 Adtnini51r8liDn Financ8 Governance 1,898,706 8,269 271,521 156,066 280,548 120,745 22,076 20,330 42.573 2,209.800 204.335 408,964 594.201 22,076 20,330 128,416 473,456 Totsl Chorltable Expendlture 2,377,431 911,286 170,989 3.459.706 Ibl OiherGovemance CoslE Include.. 2023 2022 Awditors. iemun•ralion - Audll FeeF 14.080 13.223 2023 2022 1¢) thlmlnl$trallon & Flnance Costs S8￿rIeS NattoDal Insurance Penslon Cost8 Other Staff Costs Subscripinns Staff trav81 Operating Le¥es IT SUPPDrt Postage stat￿nery Tetèphones Mgrf¢eling End 0dVer￿s1n9 MlscelL8naous-Adn*rtslraltOn Rertuitrnent Cos15 Legal 8rtd Professional Feas OtherAdministratioTr Cos1$ Bank charo89 Interèst 384,623 43,405 29.744 20,448 17,136 886 5N54 18.184 423 8,158 27,241 121 391,258 45.173 29,497 7.630 22.383 201 5,320 11.499 447 ,085 13,527 1.757 16,768 24,547 22.169 21,754 9,940 18,936 606,553 PbJè 27 The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS for thè ar ended 31 Au ust 2023 9 STAFF COSTS 2023 W8ge$ and salarte5 S￿ra1 securitycos18 Othèr pen51on cosis Olher staff costs 1089.487 230.059 225.794 39,600 1,948,005 21e,508 205.297 33,470 Trè average monlhlynLuTrber ofemployees du￿n9 thè yearway a5 fo(knF'. 21123 No. Teaching Support The numb&r of•Tploy88s wkKJst Émduments £60,DOO In Ihe y8arvas as folws.. 2023 No. 2022 No. £60,OQO.£70,000 £70.001-£80,OllO £89.001- £90,000 £100,001-£110.000 t110.001-£120,000 £12D,001 £130,000 Penswjn uJntrll)uliorts forth& yearamwnied to £59.53712022.. W.8131 for the above ompioyees. Key m8n8gememt per50nnel include th8 G¢>verfflor5 end the gxeurtwe5 whlch art made up 5 membors of the S￿k)r Leadershlp Team incknding Ihe head end the bursar. The lolal pay and ben8fiL8 receiwed by manwement personnel wer8 ts14.72412022 e574.0241. Page 28 The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS lor thè ar ended 31 Au ust 2023 10 PENSIONS From 1 SBpletnber2021, in p￿ce 8n ¢tfined ¢ontribUl￿)n s¢h¢m8 wllh AVDIA forlhè tea¢hiw siaft. Thè p&n$￿n eharye lor th8 year includes confr1b￿tlQn$ payable io th8 AVIVA s¢hem8 of L1BO,83612022.. £175,8Th)l and al Ihe year-end £24,440 Was BCfXtJed in respect of conlribulbns loth0 AVIVAseheme. also runs a schame forlt8 nO￿￿a¢hi￿￿j Ètaff. whieh is a dèfinéd con1rfm￿onS scheme. The cost ror the year represents the Schfyy's ¢onirlbuit(￿s lo Ihe schame of£44,￿6{2022..£2?￿97l at the ypdrend QMI12022.. £4,817) was accrued In r8SPaCtofci)ntriknJlions lo schem¢. t1 GOVERNORS REMUNERATION AND BENEFITS There nD GDvernors' i£m￿er￿￿On orofherbonefil$for year onded 31 August 2023 nor for year enijpd 3f ￿9v$t 2022. Trweland olherrelmbur3ements of£r¥l12021..£372lforthe govemors wre p8id bythE Gharftydurfng thB yaar. 12 NETIN¢OME FOR THE YEAR 2023 Nel Income is slatsd after trhaJging'. Deprect4bon of tanglblefixed assèt Operatlng1$8so rentals- other Audltofs remuneration Audll seryKes scMtsl. currentyear 161.336 5,454 170,989 5,320 14,LMO 13.223 Pgge 29 The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS ror the Èr ended 31 Au ust 2023 13 TANGIBLe F￿Ets AssErs PL9nl Fi¥lur89 Freehold Property Equiprnenl Fitbngs Cost.. Ai 18aplembtr2022 Additions 5,652,182 8,114 17.718 339,583 6.009,483 57,606 65,720 At31 Augu$l2023 5.660.296 17.718 397.189 6,075,293 Depre¢￿110n'. At 1 S&plember 2022 Charge fLYyear 1,564,S39 122,028 15,873 1,845 259,435 37,463 1,839,947 161,336 At 31 August 2023 1,688.687 296.￿8 2.001283 Nel book value- At 31 August 2073 3,973.629 loo.￿1 4 073,920 Al 1 Septem￿r 2022 4,087,543 80.146 4 169 $36 14 DEBTORS 2023 2022 Fees and extras Accnted income f¥epaymen15 4,973 36,863 81,536 20,444 13,518 79,415 113377 S CREDITORS Amounlsfalling doa within onè year. 2022 Loans Trade crgdilors Twation and 50fAal securityc¢ists Fas D6posiL8 FtBs in ad¥an¢e Other creditois Accrua15 76,684 76.930 57.487 71,500 473.B88 32.>60 38.039 75,591 40,084 51,336 65.000 e47.Y64 49,158 18.928 948 061 Daferred Income: 2023 2022 Bro￿ht foMar(ts Rete?sed in ￿ar Recelved in year 647.964 1647.9641 473.888 563,757 1563.757 647.964 ¢Brried fLVY4atds 473 B88 647.964 Deferred fKOTne rèlatss to sthools fees recefved in advance forthe lemi. Pag& 30 The Cavendish School Charitable Trust Limited NOIES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 16 CREDWORS DUE AFfER ONE YEAR 2022 AryK)unl$fÉl￿rty due afLer mwe Ih8n ona year.. B8nk loan Schoolfeè d8p08Ms 335,065 439,050 413.749 433,500 774115 2023 2022 4ovement on ￿ants ono ￿ar of less Be￿e￿n one ano twjo ￿&r¥ Ba￿&¥n iwoand ffve years Afterflv8 years 75,591 78,684 167.323 167.742 81,944 124,518 128,603 489.340 2023 2022 Mtr48m8nl on dèposii8'. In on£ yearor less Be￿en on8 and iwoygars Be￿￿en two and five years AftÉrfi¥è years 71.500 50,200 193.100 65,000 72.500 191,000 17D 000 510,550 498,$00 The bank loan$ are secured byfirsl second fixed ch8rge8 over the fr8ehofd proptys1￿I4Ied 8t 31 Inverness Stre81, NW1 7HB Iprevlously ref8rred to as 179 Arfington R02d, London NW17En. The baLgnct of£489.340 inckndas fixed inier8st eletnenls of £150,169 £339,171, repeypble by1Tr51alments over 10 yeqrs, on whith Inl8re$l is Cha￿ed a13.69% and 4.5% pecliv81y. 17 FINANCJAL INSTRUMENTS 2023 2022 Carrwno amount of flnanclal 8ss¥ts Measured at amorused w51 1S,276 33,*2 ¢arrylng amount olllrwnclal Ilabllitlo8 Maasured 8t amorti88d ¢081 272.043 224,506 Page 31 The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 18 STATEMENT OF FUNDS At1 September 2022 Transfèr Beiween Fund5 A131 Augtsst 2023 Inwme EXp￿ditU Ljnrestrioted & 0È￿0nated Funds-. General ie$erve Ton91b￿ Fixod Asset funds He8d'$ Olscrelionary Hard5hlp Funds f,268.199 3,680,198 5.240 83,959 3.889.258 13.646.6161 2D,025 120,0251 1.530,866 3.660.173 2.730 12,5401 Tolél Unresbi¢t￿ & De5ignBted Funds.. 5.037,596 8091,988 13,649,156) 5,280.428 Reslricled furtds". Variou$ Res¢rycled Fund5 31.051 19,996 112,6001 44,447 Toi81 funds 5,074,647 3,911,984 13,661,756) 5.324.875 Ati Septemb 2021 Transfer Beiween Funds A131 Auyust 2022 Incorn8 EXpend￿urS UnTestrKld & De6ignated Funds.. General r8$arvè Tangible F￿e￿ Asset Fund8 Head's C>isorelionary F￿d5 Hardship Funds 1,034,798 3,728.948 6.064 B3.959 3584.570 13,413.6271 82.4S0 148,7481 1,268,199 3,680.198 S.24 83.959 2.610 13.4341 Total Unr8stslctsd & De&i4nated Fund 4.853,76S S￿87,180 13,417,061) 13.712 5.037.596 ReslrKl8d tunds.. Various R¢sMctsd Fut￿ 58,725 34,683 142.6451 113.7121 37.051 Total fund$ 4,912.490 3,621.863 13,459,706) 5,074,647 Re$tri¢tod lunds The re51rlcled funds ol th9 school Indude income compr(sing danalions, grants and olher Inwm8 re¢Èiv£d on trust 10 be used for bursaries. Earfyyears 8UPPQrt and dedicaled clqssroorn aSsIs￿nI support. Unrnslrl¢tsd fund$ The tangible fixed 88$8ts fund represents the bDok velue ol the schools tarvJbk fix8d assets ￿sS idaièd loans. A decislon WB5 made lo $tPWgle Ihis lund f¢om thè gerEf81 fund of thp school in re¢09n1ti￿ of the faot that thè tangibfe fixed as5elg are e$senU21 to the daylo d8yworkof the school and as a such IheirYdlu8 shoLld not b2 regardad asfvDds Ihatwould be reallsabh ease in wderto me¢ifuluie wnling8ncies. A transleroG¢urs each yearfrDm the langlble ffxfd ￿ets fund kn the unresknrt& funds for the dèprètrabon ￿eman10f fixed assets. Tham has been a transfer Irom the reStrrcl￿I funds formonlea have been Spent￿ thB unre5tNled I￿￿￿$. Dèsignated Fund Thè Head's Dl8crellonary Fund is IuDd8d by donattons par8T4s and used al ￿e dÉ¢rgtion of th¢ Head In order kn a￿151 Ihe developmentand welfare of Indwvjual pupil5. Page 32 The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS for the ear onded 31 A ust 2023 19 ANALYSIS OF NEf ASSETS BETWEEN FiINDS Héad's Unrestricted T$ngible Flxed 0￿c￿ebo￿ary nds A55et Fund Fund Restrfcled fund 20rJ Totol Tanglbb f￿ad a$sets Currant assots Currènt liabilltièts 4.073,922 4,on,922 2,851,5fj4 1826A961 1774.1151 2,801.687 1412.7471 ITT4,1151 5,480 44,447 1413,7491 Totat nel BssBts 1614825 3 660 173 5 324 B75 leads ihrestrictsd arvJibl8 Tixed DI￿rel10naty lunds AssetFLnd F￿d Rostdcled rund 2022 Total TangRib fflxed assets Gurrenl assets 4.169,538 4,169.$38 2,TOO,419 1948,QE11 1847.2491 2,658.128 1872,4701 1433,5001 5.240 37.051 (15,5511 1413.7491 Lon9 lerm ligbilthes Tclal nel assets 1.352.1fj8 &240 20 COMMITMENT5 UNDER OPERATING LEASES At 31 Augu$12023. the eoftwny hed outslan(ling ¢ommibnents forfJlure tnlnlmum ￿8$9 poymems under￿n￿nCel￿bl8 q)eraling ￿ase$, which f411 due a$ to110￿= 2023 2022 OffiGtr equlpment equlpment tkn wNhin one year balween and years 8.957 6.9 6,95T 17,915 21 RELATED PARTIES Four1202?. five) Governor¥ who ￿ a18c* parents clilthn attendlng &ehool durfng Ihe firtancial year. Fees pa￿ by Ihe Govemor8 ar8the same as fe&s paid byolh•rs. The school has purchased thsura￿e to protect th& sr*ool from tO6E ari*ng from Ihe n8glect ordefaultG ofitg GovornDrs.Tho Insurance pretDIurn w8ble by ihe school during the y8ar iolalled £1,020<20￿.. £1.0281 and provldes CAwèrof upto a maxlmurn of £2 nmllion. During lh8 y8ar no governors wÉrÈ aw8rdad ￿$(2022.. £nill fwtho r assi51ance overth8 s￿￿￿erT*M1. Durfng theyearthe govfjrnor etso donated £nll1202Z.. £nlll lo Ihe Scmofs Burs£ryF￿. P8p 33 The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS for the ar ended 31 Au Us12023 22 CApifAL COMMITMENTS The compwy had ￿pital commknianls contract8d for bul ncl provkled forkn thèse financ￿1 Btatements of£nil12022'. £ryll. 23 NOTES TO THE CASHFLOW STATEMENT Reconclllalion Df (yeralln9 rasullto nol cash infiowfrom operating aciivibÈS 2023 2022 JnDvernenl In tunds DÈpreclallon gank intere51 recewed Intèrest payabie Increa$ellDecrea5el in Creditors IlncreaseyOecreas$ in debtors 25D,22B 161,336 1SD,5581 16.B30 1119.1081 19,9851 162,157 170,989 11.0701 22.076 135.427 158.9191 ysl$ olchangos in net dgbt At1 septembor 2022 other rw- ¢a¥h changes At3q Au9USt 2023 Co$h flows Cash and ¢ash equlvalents Cash Overdrafts Cash equiYdleN5 2,587,042 141,160 2,728202 2.587,042 141,160 2,728,202 8trrrowlng8 Détstdue￿thl￿ one year Debl(Jue aflerone yaar -75,772 413,567 489,J39 75,591 .T8.684 78,684 -78,865 434.863 413,748 75.591 Tothi 2.097.703 216.751 2.374,454 P8ye 34