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2021-08-31-accounts

Channing House Incorporated, Highgate (Limited by Guarantee)

REPORT AND FINANCIAL STATEMENTS

For the year ended 31 August 2021

Company No: 00063121 Registered Charity No. 312766

Channing House Incorporated, Highgate GOVERNORS, OFFICERS AND ADVISERS

To be presented at the Annual General Meeting of the company to be held at Channing School, The Bank, Highgate Hill, London N6 5HF on 17 March 2022.

GOVERNORS

The Board of Governors may appoint any member of the Association as a Governor, either to fill a casual vacancy or by way of addition to the board. All Governors are required to confirm that they will support the Unitarian traditions of the School. Except as otherwise indicated the following were Governors during the year and to the date of signing this report:

Ms C Peck * LLB (Bristol) (Chair) Mr JAG Alexander * FCA Mr A Appleyard * BSc (Reading) Mrs J Burns * BA (Southampton) Mrs C Chandler-Thompson BA (Exeter) (Appointed 1 September 2021) Rev D Costley BA (Open University) Mrs L Cristie * BA (Bristol) Mr R Hirji MBA (Manchester) (Appointed 1 September 2021 Mrs C Hulme-McKibbin B.Ed (Cantab) (Appointed 1 September 2021) Mr D Oliver M Phil (Oxford) Mrs J Otterburn Hall BA (Bristol) Ms D Patman * FRICS ACIArb (Retired 18 March 2021) Mrs P Peck MBA (Oxon) Ms B Rentoul MA (Yale) Mr WJH Spears BA (SOAS), MBA Dr A Sutton MB ChB Dr H Stringer MA, DPHIL (Retired 31 August 2021) Dr I Wassenaar MA, DPhil (Retired 31 August 2021) Mr K Van der Sande CIMA (BPP) (Appointed 1 September 2021

MEMBERS OF ASSOCIATION

The Members of the Association, except as otherwise indicated, throughout the year were, in addition to the Governors listed above:

Mr SD Barber BSc (Econ) FCA Professor HG Beale MA (Oxon) Mrs D Bond BA (Cantab) Mr S M D Brown BA (Dunelm) Ms CEA Budgett-Meakin BA (Kent) Mr JM Burns MA (Oxon) Baroness J Coussins MA (Cantab) Baroness C Cox MSc (Econ) PhD Dr J Dacre BSc Miss JAM Davidson BSc (London) Dr AP Hogg MA (Oxon) PhD (London) Mrs S Moloney SRN RHV Mrs C Richards BSc.Arch (London) Miss M Rudland BSc Mrs VA Schilling MCSP Mr M Steiner MA (Oxon) Dr T Stone MA (Cantab) PhD Miss EM Tucker MA (Cantab) Dr DJ Williams MB BCh Dr DL Wykes BSc PhD

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Channing House Incorporated, Highgate GOVERNORS, OFFICERS AND ADVISORS

OFFICERS The Headmistress Mrs L D J Hughes BA (Warwick) The Bursar Mr R K J Hill OBE MA ACMA Address Channing School Highgate Hill London N6 5HF BANKERS Lloyds Bank plc Commercial Banking PO Box 1000 BX1 1LT SOLICITORS Dentons UKMEA LLP One Fleet Place London EC4M 7WS AUDITORS RSM UK Audit LLP 25 Farringdon Street London EC4A 4AB REGISTERED OFFICE Channing School Highgate Hill Highgate London N6 5HF

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Channing House Incorporated, Highgate GOVERNORS’ REPORT

REFERENCE AND ADMINISTRATIVE INFORMATION

The School was incorporated in England and Wales on 27 July 1899 and is a company limited by guarantee, its members being members of the Association, having a liability not exceeding £5 each. The School was established under a Memorandum of Association which established the objects and powers of the charitable School and is governed under its Articles of Association. The company is a registered charity with charity number 312766 and company number 00063121. The Governors of the School, who are also the charity trustees and company directors, and the School’s principal officers and advisers are listed on pages 1 and 2. Whenever Governors are referred to in this report this subsumes their roles as both charity trustees and company directors of Channing House Incorporated, Highgate within the meaning of Company Law.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Governors determine the general policy of the School. The day-to-day management of the School is delegated to the Headmistress and the Bursar . Governors determine the remuneration of key management personnel through a Remuneration Committee. In setting the remuneration of key personnel this committee takes note of national pay scales, individual performance and internal and external benchmarking as necessary.

There have been no transactions with the related parties of the School, with the exception of the key management personnel remuneration as disclosed in Note 4.

RECRUITMENT AND TRAINING OF GOVERNORS

Governors are appointed as vacancies arise. In making appointments Governors take into account Charity Commission guidance and the skills that are required by the School. Potential candidates who possess the requisite personal and specialist skills are identified, including through the use of specialist recruitment agencies, discussed by Governors and invited to become a Governor as appropriate.

New Governors are provided with information about the School and appropriate training and induction is arranged. On appointment, Governors are briefed on their responsibilities as Directors, Trustees and Governors. They are also encouraged to attend training courses on the roles of Governors run by The Association of Governing Bodies of Independent Schools (AGBIS). Governors are also given regular presentations by Heads of Department on specific curricular developments and they are invited and encouraged to link up with a Department and observe lessons and activities at first hand.

STATEMENT OF PROVISION OF INFORMATION TO AUDITORS

The Governors in office on the date of this report have confirmed, as far as they are aware, that there is no relevant audit information of which the charitable company’s auditor is unaware. Each of the Governors has confirmed that they have taken all the steps that they ought to have taken as Governors to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

AUDITOR

RSM UK Audit LLP has indicated its willingness to continue in office.

PUBLIC BENEFIT

The Governors confirm that, to the best of their knowledge and belief, they have complied with the duty in the Charities (Accounts and Reports) Regulations 2008 in respect to having due regard to the public benefit guidance published by the Charity Commission.

The School provides public benefit in many ways. The School provides bursaries generally on entry to the School at Year 7 and Year 12. The School implemented, in 2010, a revised policy of the Governing Body designed to increase the availability of awards made on the basis of ability to pay. This has resulted in bursaries and concessions increasing to £1,213,457 during the current year (2020: £896,703). Part of this increase is attributable to hardship support for families of current pupils whose circumstances changed significantly during the Covid pandemic such that their ability to pay was and continues to be affected.

Additionally, the School actively participates in the East London Consortium ISSP, an Independent/State School Partnership. Invitations are extended to local Schools to attend workshops, training events and presentations from visiting speakers. The School also makes available its facilities for use by the local community for sporting events and occasional conferences and meetings. The School is particularly supportive of girls’ sport and provides its facilities for

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Channing House Incorporated, Highgate GOVERNORS’ REPORT

use both by Middlesex County and two local netball clubs and the School’s playing fields are widely used by Hampstead Archery Club and the local community. The School generally makes its facilities available (to local community groups) for these purposes for a minimal or no charge. The school is also building Partnerships with a number of local organisations including Highgate Newtown Community Centre, Brookfield School and Highbury Fields School. These relationships are at a formative stage and further development is expected during 2021/22

OBJECTIVES AND ACTIVITIES

The School’s principal purpose is to carry on a day School for girls. Pupils enjoy outstanding personal success at school and beyond, as a result of the School’s holistic, balanced education. This is achieved by a combination in equal measure of academic excellence, pastoral care and breadth of extra and co-curricular activities. The School’s Unitarian ethos encourages our pupils to be intellectually curious, open-minded and respectful. Details of the School’s strategic objectives to achieve this are provided in the Strategic Report that follows.

STRATEGIC REPORT:

REVIEW OF ACHIEVEMENTS AND PERFORMANCE

On 1 September 2020 Mrs Lindsey Hughes succeeded Mrs Barbara Elliott as Headmistress of Channing. Mrs Hughes has not only achieved a seamless transition in leadership but also in welcoming pupils back to school with the added constraints of the current environment and on steering the School through another turbulent year.

During the year the School has continued to work towards achieving its published strategic objectives which support the School’s mission. The objectives were introduced from September 2020 and cover the period 2020 to 2025. The School continues to make progress against these objectives.

Strategic Objectives 2020 to 2025

1. To provide an excellent and relevant education, free from undue pressure, that inspires all pupils to achieve their full potential. The School continues to deliver outstanding academic results. In Summer 2021 97.5% (2020 95.2%) of pupils gained A*-B grades at A level and the percentage of all GCSE results graded 9/8/7 was 92.4% (2020: 89.1%) of which 78.1% (2020: 67%) gained 9/8 at GCSE. The School is very proud that these results have been achieved and continue to improve whilst at the same time identifying ways to reduce the pressure on students.

2. To support personal development which puts wellbeing at the heart of our pastoral provision. The School has continued to identify means to improve its reputation for pastoral care, which places pupils at the heart of the school. The School is continuing to extend opportunities for pupil leadership at both the Senior and Junior Schools. The School has also continued to make significant improvements in its SEND provision across the school and continues to recognise the importance of supporting the mental health of the School community. The School has delivered a programme of Mental Health First Aid Training to support both pupils and staff as well as increasing access to counselling services for both pupils and staff.

3. To embrace modern technology and use it as a means to enhance pupils’ independence as learners to prepare them for the future.

The School continues to invest in new technology, recognising the opportunities it provides to enhance independence as well as collaboration amongst students. The renewed focus on technology as a result of COVID 19 has been of significant benefit to the school throughout the COVID pandemic and pupils have continued to access excellent teaching and learning during periods when the School has been forced to close. The School is also aware of the risks that technology can present to young people and is working to address these through educating pupils and by supporting parents including offering technology information events. To combat this the School has put in place the necessary policies and safeguards around the use of technology in school and has provided guidance to ensure that staff and pupils are aware of the risks associated with the use of Information Technology.

4. To provide a secure, safe and healthy environment. The School continues to put pupil safeguarding at the heart of the School’s operation ensuring that staff and pupils are aware of the strategies and procedures in place to minimise the risk to pupils. The School is also continuing to develop well-being strategies for both pupils and staff.

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Channing House Incorporated, Highgate GOVERNORS’ REPORT

5. To develop further opportunities for Science, Technology, Engineering & Maths (STEM). The development of STEM is recognised as an ongoing priority for the School across all Key Stages and is reflected in continuing to upgrade and improve Science facilities as well as making additional resources available to develop STEM provision within the School.

6. To manage the School’s resources effectively and to ensure that the School can continue to attract the brightest students. As a result of exercising sound control over the School’s finances, the School has been able to continue to invest in improved facilities in the Junior school as well as further enhancing provision for the Performing Arts at the Senior School. The School has also commissioned a strategic review of its estate and facilities with a view to further development of the estate to meet the future needs of the School.

7. To recognise and promote our social responsibility. The school is aware of its social responsibility to both the local and wider communities. The School continues to develop links with the local community including the Highgate Newtown Community Centre with whom the school worked to host a highly successful Summer Camp at the School. The School also undertook an in depth review of its approach to Diversity, Equality and Inclusion. The review incorporated the views of pupils, staff and alumnae. The recommendations will be taken from 2021/22.

Review of other achievements

The School continues to support a very large number of charitable and cultural activities. In particular makes a significant contribution to the community through many local activities including musical and sporting events as well as participating in local sporting and community events. The Young Enterprise scheme and the Duke of Edinburgh Awards programme continue to enjoy significant popularity and The Forest School learning programme has been further developed in the Junior School. The School is also increasing its involvement in the local community with pupils across the school undertaking a wide variety of activities. Additionally during the year the School raised funds both directly and via Just Giving for its chosen charities of Refuge, Cancer Research UK and All Dogs Matter among others.

The school, despite the challenges of dealing with COVID-19, has maintained its performance against Key Financial Performance Indicators set at the start of the year.

FINANCIAL REVIEW

The Statement of Financial Activities on page 14 shows net income of £3,699,500 (2020: £3,360,500).

The result for the year and the year end financial position of the School is considered satisfactory and is consistent with the School’s planned target. This has been achieved by the School continuing to take appropriate action in response to COVID-19 which, significantly impacted the Spring Term when the School’s activities had to once again switch to a virtual platform providing remote learning as well as staying open for pupils of key workers.

During the year capital expenditure of £2,087,600 (2020: £5,685,200) was incurred of which £1,633,300 was in respect of the completion of the Junior School redevelopment. The School’s major programme of redevelopment at the Junior School which included a new Sports Pavilion, a new School Hall and also new and refurbished classrooms completed as planned in December 2020 in readiness for the start of the Spring Term. Further, less extensive work has also been undertaken during the year to refurbish other parts of the Junior School and to enhance the landscaping and outside sports facilities, including the creation of a Multi Use Games Area at the Junior School.

The Balance Sheet on page 15 shows net current assets of £3,360,400 (2020: net current liabilities of £393,500). The significant increase in the School’s net current asset position is attributable to the net income generated during the year.

DONATIONS

Income for the year includes £43,600 (2020: £111,000) of restricted Donations, all of which were attributable to the new Sport, Sixth Form, Music and Performing Arts facilities, and the Junior School redevelopment.

During the year the School has not undertaken any significant fundraising activities. No third party fundraisers have been engaged and no complaints have been received.

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Channing House Incorporated, Highgate GOVERNORS’ REPORT

FUTURE PLANS

The Governors have agreed to continue to develop the School in line with the strategic objectives above which all build on the overall aim, that Channing pupils should enjoy success at School and beyond.

FUNDS HELD

Notes 10 and 11 to the financial statements sets out an analysis of the School’s restricted and unrestricted funds of £486,500 (2020: £440,000) and £22,458,700 (2020: £18,805,700) respectively and their attributable assets and liabilities. These net assets are sufficient to meet the obligations on a fund by fund basis. The School’s tangible assets are all held for use in the School.

It is the School’s long term policy to build and maintain the School’s free reserves, though the Governors recognise that achieving any material increase in free reserves will not be possible whilst the School has bank loans to repay and continues to develop its buildings and facilities for the benefit of current and future generations of pupils. With this in mind, rather than set a specific target for free reserves, when considering the School’s available reserves, Governors take into account the long term bank facilities/loans in place but undrawn at the year end and creditors falling due in more than one year. Creditors falling due in more than one year comprise the funds held in respect of final term deposits and advance fees, and long term bank loans drawn down.

Taking account of the above definition of the School’s free reserves, the free reserves at the year end comprise the sum of the School’s confirmed bank loan facilities undrawn plus net current assets or less net current liabilities. On this basis at the year end the School’s free reserves were around £5,900,000 (2020: £2,100,000).

Governors have invested substantial sums into the School over recent years and have a continuing programme of refurbishment, development and investment in order to maintain and enhance the facilities for pupils. Whilst this programme is continuing and the long term bank loans are being repaid, the School is unlikely to be in a position to build up free reserves on a long term basis.

The Governors consider that, given the strength of the School’s balance sheet, forecast net income for the year to 31 August 2022 and the market value of the School’s property, which is not currently reflected in the reserves, the School’s level of reserves at the year end are satisfactory given that the School has an ongoing development programme and the nature of its creditors falling due in more than one year. Additionally, Governors ensure robust budgeting, cash flow monitoring and risk profiling are exercised to ensure the School can meet its ongoing educational needs and continue to invest in its estate and facilities. The Governors are satisfied that the School has sufficient available cash and borrowing facilities to meet its strategic objectives.

Restricted Funds

Scholarship, Prize and Bursary Funds

This represents bequests and donations received by the School, which are subject to the specific wishes of the donor. These funds are matched by investments. Movement in the fund during the year comprised donations, investment income and interest. The investment income and interest is used to fund Scholarships and Bursaries for pupils attending the School.

School Development Fund

Incorporated within the School Development Fund is “The Capital Challenge” fundraising programme. This programme was launched in 2013 to raise funds to build a new Sports Hall and Sixth Form Centre and a New Performing Arts Facility. The School is no longer actively promoting fundraising for The Capital Challenge, though donations continue to be received and credited to this fund. In addition, funds raised towards the Junior School redevelopment are also credited to this fund.

Funds credited to this fund are transferred to Unrestricted Funds when the restriction placed on the income received has been discharged.

The restriction placed on the funds received in respect of both The Capital Challenge fundraising programme and in respect of the Junior School redevelopment have been discharged as the expenditure has been incurred and capitalised within fixed assets. The funds received in respect of both The Capital Challenge and Junior School redevelopment have therefore been transferred to Unrestricted Funds.

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Channing House Incorporated, Highgate GOVERNORS’ REPORT

Channing Alumnae

The Channing Alumnae Fund is a restricted fund of the School held for the purpose of promoting school alumnae. The fund is used to promote communication between the School and alumnae and also amongst alumnae. A number of reunion events are also held throughout the year. The Channing Alumnae fund is managed by the Alumnae Committee, and an appropriate balance maintained.

Channing Association

The Channing Association is a restricted fund of the School for the purpose of fostering support for the School from the wider Channing community including current and former parents and friends of the School. The Channing Association organises social events for both parents and pupils and also helps support a number of school events during the year. The Association also undertakes occasional fundraising for the School, but this is incidental to its core purpose. The Channing Association has its own committee structure, which determines both its activities and expenditure for the year. The Channing Association fund is managed by the Channing Association committee and an appropriate balance maintained.

Unrestricted Funds

The Governors intend to maintain undesignated unrestricted funds at a level appropriate to meet the School’s ongoing working capital requirements.

The School’s funds continue to be reviewed annually by the Governors in the context of the School’s needs and obligations and future plans.

INVESTMENTS

The Governors have agreed that investments are held to create income to help fund the Scholarships and Bursaries awarded. Investments are held in a mixture of listed investments and cash deposits and are managed and benchmarked appropriately so as to maintain their contribution whilst preserving the real value of the investments. Governors have taken account of the ethical considerations of the investments held and adopted a low risk approach, such that the vast majority of the School’s listed investments are held in recognised charity funds. During the year, no additional cash deposit investments were received in respect of restricted funds (2020: £4,400). The market value of the School’s investments have increased by £48,100 (2020: decreased by £9,600).

RISK MANAGEMENT

The School maintains a comprehensive risk register which is regularly reviewed and is presented to the Governors at every meeting. The Governors routinely consider both the major risks and other possible risks facing the School and the probability of the risks arising. They are assisted in this regard by the Headmistress, Bursar and other members of the School’s Senior Leadership Team. The Governors also considered the risks associated with COVID 19 throughout the year. General controls used by the Governors to identify and assess risks during the year include:

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Channing House Incorporated, Highgate GOVERNORS’ REPORT

Through the above risk management processes, the Governors are satisfied that major risks are identified and as far as practicable adequately mitigated. It is recognised that systems can only provide reasonable, but not absolute, assurance that major risks have been adequately managed.

The main risks that the Governors have identified and the plans to manage those risks are:

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Channing House Incorporated, Highgate

GOVERNORS’ RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS

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

Company law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Channing House Incorporated, Highgate INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

Opinion

We have audited the financial statements of Channing House Incorporated, Highgate (the ‘charitable company’) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

Basis for opinion

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 charitable company 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 Governors’ 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 charitable company’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 Governors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Governors’ Report other than the financial statements and our auditor’s report thereon. The Governors are responsible for the other information contained within the Governors’ 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.

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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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Channing House Incorporated, Highgate INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Governors’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Governors

As explained more fully in the Statement of Governors’ responsibilities set out on page 10, the Governors (who are also the directors of the charitable company for the purposes of company law) 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 Governors 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 Governors are responsible for assessing the charitable company’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 charitable company 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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

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Channing House Incorporated, Highgate INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011 and the charitable company’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Governors’ Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The most significant laws and regulations that have an indirect impact on the financial statements are The Education (Independent School Standards) Regulations 2014, Keeping Children Safe in Education under section 175 of the Education Act 2002, and the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Sladden (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 25 Farringdon Street London EC4A 4AB

2021

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Channing House Incorporated, Highgate

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 August 2021

Note
Unrestricted
Funds
£’000
Restricted
Funds
£’000
INCOME FROM:
Donations
13.3
43.6
Charitable Activities:
School Fees receivable
1
19,829.7
-
Other income
2
455.4
31.5
Investments
Investment income
-
7.3
Bank interest
2.7
0.2
_
_
Total Income
20,301.1

82.6

EXPENDITURE ON:
Raising funds:
Fundraising and
Development
12.3
-
Bank loan interest
204.7
-
_
_
217.0
-
Charitable activities:
School operating costs
16,474.7
40.7

Total Expenditure
3
16,691.7

40.7
Gain /(Loss) on revaluation
of investments - unrealised
6
-
48.2
Net Income before transfers
3,609.4
90.1
Transfers between funds
10
43.6
(43.6)

Net movement in funds
3,653.0
46.5
Balances brought forward at
1 September
18,805.7
440.0

Balances carried forward at
31 August
11
22,458.7

486.5		 2021
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
56.9
20.3
111.0
19,829.7
17,709.9
-
486.9
796.0
44.1
7.3
-
8.6
2.9
48.7
3.3
_
_
_
20,383.7
18,574.9

167.0
12.3
13.7
-
204.7
204.6
-
_
_
_
217.0
218.3
-
16,515.4
15,101.9
51.6


16,732.4

15,320.2

51.6
48.2
-
(9.6)
3,699.5
3,254.7
105.8
-
111.0
(111.0)


3,699.5
3,365.7
(5.2)
19,245.7
15,440.0
445.2


22,945.2

18,805.7

440.0		 2020
£’000
131.3
17,709.9
840.1
8.6
52.0
_
18,741.9
13.7
204.6
_
218.3
15,153.5
15,371.8
(9.6)
3,360.5
-
3,360.5
15,885.2
19,245.7

14

Notes 2021 2020
£'000 £'000
FIXEDASSETS:
Tangibleassets 5 30,561.9 29.278.5
Investments 6 486.5 440.0
31,048.4 29,718.5
CURRENTASSETS:
Debtors 7 332.4 483.2
Cashat bankand inhand 10,368.6 6,094.5
10,701.0 6,577.7
CREDITORS: Amountsfallingduewithinoneyear 8 (7,340.6) (6,971.2)
NET CURRENTASSETS(LIABILITIES) 3,360.4 (393.5)
TOTALASSETS LESSCURRENTLIABILITIES 34,408.8 29.325.0
CREDITORS: Amountsfallingdueaftermorethanoneyear 9 (11,463.6) (10.079.3)
TOTALNET ASSETS 22,945.2 19.245.7
REPRESENTED BY:
RESTRICTED FUNDS 10 486.5 440.0
UNRESTRICTED FUNDS
Retained Income 22,458.7 18,805.7
TOTAL FUNDS 22,945.2 19.245.7

Channing House Incorporated, Highgate ACCOUNTING POLICIES

For the year ended 31 August 2021

Net cash from by operating activities
Cash flows from investing activities
Cash flows from financing activities
Increase/(Decrease) in cash and cash equivalents in the year
Cash and cash equivalents at 1 September
Total cash and cash equivalents at 31 August
(A) - Net cash provided by operating activities
Net Incoming Resources (as per the statement of financial activities)
Adjusted for:
Unrealised (Gain)/Loss on revaluation of investments
Depreciation (note 5)
Bank loan interest payable
Investment income receivable
Bank interest receivable
Decrease in debtors
Increase in creditors
Net cash provided by operating activities
(B) – Cash flows from investing activities
Investment Income
Bank interest received
Bank loan interest paid
Purchase of tangible assets
Decrease/(Increase) in investment cash
(C) – Cash flows from financing activities
Repayments of bank loans
Cash inflows from new bank borrowing
(D) – Analysis of changes in net debt
Cash and cash equivalents
Borrowings:
Debt due within one year (note 8)
Debt due after one year (note 9 (c) )
Total		 Notes
2021
£’000
2020
£’000
(A)
7,061.8
4,848.7
(B)
(2,280.4)
(5,833.6)

4,781.4
(984.9)
(C)
(507.3)

581.1
4,274.1
(403.8)
6,094.5
6,498.3

10,368.6
6,094.5

3,699.5
3,360.5
(48.2)
9.6
804.2
653.8
204.7
204.6
(7.3)
(8.6)
(2.9)
(52.0)
150.8
53.1
2,261.0
627.7


7,061.8
4,848.7


7.3
8.6
2.9
52.0
(204.7)
(204.6)
(2,087.6)
(5,685.2)
1.7
(4.4)


(2,280.4)
(5,833.6)


(507.3)
(418.9)
-
1,000.0


(507.3)
581.1


At 1
Sept
2020
Cash flows
At 31
Aug 2021
6,094.5
4,274.1

10,368.6

(514.6)
(13.9)
(528.5)
(5,190.6)
521.2

(4,669.4)

(5,705.2)
507.3

(5,197.9)

389.3
4,781.4

5,170.7
 2020
£’000
4,848.7
(5,833.6)
(984.9)
581.1
(403.8)
6,498.3
6,094.5
3,360.5
9.6
653.8
204.6
(8.6)
(52.0)
53.1
627.7
4,848.7
8.6
52.0
(204.6)
(5,685.2)
(4.4)
(5,833.6)
(418.9)
1,000.0
581.1
(528.5)
(4,669.4)
(5,197.9)
5,170.7

BASIS OF FINANCIAL STATEMENTS

16

Channing House Incorporated, Highgate ACCOUNTING POLICES

For the year ended 31 August 2021

The accounts of the School are prepared in accordance with the Companies Act 2006, and with the Charities Statement of Recommended Practice (‘SORP (FRS102)’ effective 1 January 2019) and Financial Reporting Standard 102. The accounts are drawn up on the historical accounting basis except that investments held as fixed assets are carried at market value. The School meets the definition of a public benefit entity under FRS102.

The financial statements are prepared in sterling, which is the functional currency of the School. Monetary amounts in these financial statements are rounded to the nearest thousand pounds.

GOING CONCERN

The nature of the School’s activities is such that fee income represents the majority of the School’s income. Fee income is billed and received one term in advance. Forecasts are produced taking account of the timing and quantity of fee income, likely expenditure profile, the cost of completing the new Junior School facilities and the bank facilities available. In preparing these forecasts the School has also been vigilant in assessing the impact of Coronavirus on the School’s finances. These forecasts are provided to the Governors. On this basis no material uncertainties that may cast significant doubt about the ability of the School to continue as a going concern have been identified by the Governors. Therefore, the Governors have concluded to prepare the accounts on a going concern basis.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the accounting policies, where the value of assets and liabilities are not readily apparent from other sources, accounting estimates and judgements are made based on historical experience and other factors, including future expectations, which are considered to be reasonable in the circumstances.

The estimates and underlying assumptions concerning the future are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised. Accounting estimates and assumptions, will, by definition, seldom equal the actual results.

DONATIONS, LEGACIES, GRANTS AND OTHER VOLUNTARY INCOME

Voluntary income is accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.

Voluntary income for the School’s general purpose is accounted for as unrestricted and is credited to Retained Income.

Where the donor or an appeal has imposed restrictions, voluntary income is credited to the relevant restricted fund.

FEES RECEIVABLE AND SIMILAR INCOME

Fees receivable comprise fees charged to pupils net of Scholarships, Bursaries and allowances, and are accounted for in the year in which the service is provided.

Pupils joining the School are required to pay a deposit which is then applied against the pupil’s final term’s fee bill. Reasonable assumptions are made regarding the time pupils will remain with the School in assessing when the deposits held will be applied to offset the pupil’s fees for their final term.

EXPENDITURE

Expenditure is accrued as soon as a liability is considered probable. Expenditure attributable to more than one cost category in the Statement of Financial Activities is apportioned on the basis, of the activities staff are involved in. Certain costs are netted off against related income when it is appropriate to do so.

The School is not registered for Value Added Tax. All expenditure is therefore included in the expense category to which it relates inclusive of any Value Added Tax.

17

Channing House Incorporated, Highgate ACCOUNTING POLICES

For the year ended 31 August 2021

TANGIBLE FIXED ASSETS

Land and buildings are carried in the balance sheet at original cost less accumulated depreciation as the Governors consider that it is not appropriate to incur the expense of obtaining valuations of such assets. The cost of new buildings is added to fixed assets although repairs, alterations and improvements that do not materially enhance the economic benefit of the buildings are expensed as incurred; such costs are often substantial. Costs incurred in arranging long term debt to fund material additions to the School’s land and buildings are included in fixed asset additions. The insured value of the School's assets is shown in note 5.

Furniture and teaching equipment are expensed in the period of acquisition. Such items will generally cost less than £14,000 per individual item and will include computers and ancillary items.

DEPRECIATION

Depreciation is calculated by reference to the cost of fixed assets using a straight line basis at rates considered appropriate having regard to the expected lives of the assets. Depreciation is not provided on freehold land.

The annual rates of depreciation in use are:

Freehold buildings (including landscaping) 1% - 5%
Buildings in the course of construction Nil
Plant, Equipment, Fixtures and Fittings 10% - 33.3%
Motor Vehicles 25%

Governors have considered the impairment of those freehold buildings with an estimated useful life of over 50 years and are satisfied, having considered both realisable value and value in use, that the buildings have not been materially impaired.

INVESTMENTS

Investments are initially recognised at cost. They are held as fixed assets to provide an investment return and are stated in the balance sheet at their open market value as at the balance sheet date. Any resulting unrealised gain or loss is taken to the fund to which it relates.

FUNDS

The funds of the School are segregated between:

(i) Restricted Funds

Incorporated within the School Development Fund is “The Capital Challenge” fundraising programme. This programme was launched in 2013 to raise funds to build a new Sports Hall and Sixth Form Centre and a New Performing Arts Facility. The school is no longer actively promoting fundraising for the Capital Challenge, though donations continue to be received and credited to this fund. In addition, funds raised towards the Junior School redevelopment are also credited to this fund. Funds credited to this fund are transferred to Unrestricted Funs when the restriction placed on the income received has been discharged. The restriction placed on the funds received in respect of both The Capital Challenge fundraising programme and in respect of the Junior School redevelopment have been discharged as the expenditure has been incurred and capitalised within fixed assets. The funds received in respect of both The Capital Challenge and Junior School redevelopment have therefore been transferred to Unrestricted Funds.

The Channing Alumnae Fund is a restricted fund of the School for the purpose of promoting school alumnae. The fund is used to promote communication between the School and alumnae

18

Channing House Incorporated, Highgate ACCOUNTING POLICES

For the year ended 31 August 2021

and also amongst alumnae. A number of reunion events are also held throughout the year. The Channing Alumnae fund is managed by the Alumnae committee.

The Channing Association is a restricted fund of the School for the purpose of fostering support from the wider Channing community including current and former parents and friends of the school. The Channing Association organises social events for both parents and pupils and also helps support a number of school events during the year. The Association also undertakes occasional fundraising for the School, but this is incidental to its core purpose. The Channing Association has its own committee structure, which determines both its activities and expenditure for the year.

(ii) Unrestricted Funds

The School seeks to maintain undesignated unrestricted funds at a level appropriate to meet the School’s ongoing working capital requirements.

FINANCIAL INSTRUMENTS

The School only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. As such, financial instruments are initially recognised at transaction value and subsequently measured and held at amortised cost using the effective interest rate method.

Financial assets comprise cash at bank and in hand together with debtors less prepayments and are recognised when the School becomes contractually entitled to receive cash or other financial assets from a third party.

Financial liabilities comprise creditors falling due both within and after one year excluding deferred income and other tax and social security liabilities and are recognised when the School incurs a legal or constructive obligation to deliver cash or another financial asset to a third party.

All financial instruments are held for the sole purpose of managing the cash flow of the School on a day-to-day basis or arise from normal operating activities.

PENSION COSTS

Retirement benefits for most teachers of the School are provided by the Teachers’ Pension Scheme (TPS). The TPS is a multi employer defined benefit pension scheme. It is not possible to identify the School’s share of the underlying assets and liabilities of the Scheme. Accordingly, as required by FRS102, the School has accounted for its contributions to the Scheme as if it were a defined contribution scheme.

The School also operates defined contribution schemes for other staff. Contributions to these schemes are charged to the Statement of Financial Activities in the year in which they are incurred.

OPERATING LEASES

Rental payments on operating leases are charged to the Statement of Financial Activities on a straight-line basis over the life of the lease.

19

Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2021

1 CHARITABLE ACTIVITIES – SCHOOL FEES RECEIVABLE

Fees receivable are stated net of Scholarships and Bursaries awarded and allowances given. Scholarships, Bursaries and allowances totalled £1,748,083 (2020: £1,450,637).

2
CHARITABLE ACTIVITIES -
OTHER INCOME
Educational visits and other recoverable items
Registration fees and fees in lieu of notice
Coronavirus Job Retention Scheme
Other income
3
TOTAL
EXPENDITURE
Staff costs
(note 4)
£’000
Depreciation
£’000
Raising funds:
Fundraising and Development
11.2
-
Bank Loan interest
-
-

Total Cost of Raising Funds
11.2
-

Charitable activities:
School operating costs:
Teaching
8,856.7
-
Welfare and Catering
619.4
-
Premises and occupancy
177.6
804.2
Property repair and
maintenance
-
-
Administration and support
1,105.1
-
Governance
45.4
-
Grants, awards and prizes
-
-


Total Charitable expenditure
10,804.2
804.2

TOTAL EXPENDITURE
10,815.4
804.2


2020:
10,305.8
653.8

 Other
costs
£’000
1.1
204.7

205.8

1,565.7
350.4
1,220.6
1,237.9
493.7
31.2
7.5

4,907.0

5.112.8

4,410.0
 2021
£’000
192.9
130.9
123.0
40.1

486.9

2021
Total
£’000
12.3
204.7

217.0

10,422.4
969.8
2,202.4
1,237.9
1,598.8
76.6
7.5

16,515.4

16,732.4
 2020
£’000
247.3
168.5
369.7
54.6
840.1
2020
Total
£’000
13.7
204.6

218.3

9,849.4
801.8
2,137.0
695.2
1,579.5
77.1
13.5

15,153.5

15,371.8

20

Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

3
TOTAL EXPENDITURE (Continued)
Charitable expenditure includes:
Operating lease rentals
Auditor’s remuneration:
For audit services - RSM UK Audit LLP (exclusive of VAT)
For payroll services - RSM Employer Services Limited
4
STAFF COSTS
The aggregate staff costs (note 3) were as follows:
Wages and salaries
Social security costs
Pension contributions		 2021
£’000
289.7
24.4
21.7

8,455.0
871.4
1,489.0

10,815.4
 2020
£’000
352.3
23.8
21.1

8,062.8
843.7
1,399.3

10,305.8

Included in wages and salaries are termination payments totalling £119,407 (2020: £50,381).

The average monthly number of employees during the year was made up as follows:

2021 2020 2020
Full Time Part Time Full Time Part Time
Teaching 79 34 77 34
Technical and support 8 7 8 6
Catering 15 4 16 4
Maintenance and caretaking 4 - 4 -
Administrative 14
 7
 12
 8
120
 52*
 117
 52*

21

Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2021

4 STAFF COSTS (continued)

The number of employees whose emoluments (excludes employer’s pension contribution) exceeded £60,000 was:

0,000 was:
2021 2020
£60,001 – £70,000 15 15
£70,001 - £80,000 3 4
£80,001 - £90,000 1 2
£90,001 - £100,000 2 -
£100,001 - £110,000 - 1
£110,001 - £120,000 1 -
£120,001 - £130,000 1 -
£150,001 - £160,000 1 -
£170,001 - £180,000 1 -
£180,001 - 190,000 - 1
£270,000 - £280,000 -
 1

Contributions of £375,435(2020: £321,599) were made to the Teachers’ Pension Scheme, which is a defined benefits scheme, for 23 (2020: 22) higher paid employees. Contributions of £20,707 (2020: £20,587) were also made to defined contribution schemes for 2 (2020: 2) higher paid employees.

Aggregate employee-benefits of key management personnel (including employer pension and national insurance contributions)

£424,129 £530,468

5
TANGIBLE FIXED
ASSETS
Cost:
Freehold land
and buildings
£’000
Buildings in the
course of
construction
£’000
Plant,
Equipment,
Fixtures and
Fittings
£’000
31 August 2020
22,122.5
9,488.8
1,913.2
Transfers
11,004.8
(11,122.1)
117.3
Additions
-
1,633.3
431.1



31 August 2021
33,127.3
-
2,461.6

Depreciation:
31 August 2020
2,536.1
-
1,726.3
Charged in the year
674.0
-
114.1



31 August 2021
3,210.1
-
1,840.4

Net book value:
31 August 2021
29,917.2
-
621.2



31 August 2020
19,586.4
9,488.8
186.9		 Motor
Vehicles
£’000
79.7
-
23.2

102.9

63.3
16.1

79.4

23.5

16.4		 Total
£ ‘000
33,604.2
-
2,087.6

35,691.8

4,325.7
804.2

5,129.9

30,561.9

29,278.5

22

Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2021

5 TANGIBLE FIXED ASSETS (Continued)

Freehold land and buildings include an estimate by the Governors of the original cost of the land and buildings at £56,000 (2020: £56,000) of which £18,000 is estimated to be the original cost of the land. The School’s buildings (excluding the value of freehold land) have been valued at £19,000,000 for insurance purposes. The Governors believe that the value of the School’s land, comprising just under 3 hectares in North London is very significantly in excess of its original cost.

6
INVESTMENTS
Market value at 1 September
(Disposals)/Additions
Revaluations
Market value at 31 August
Historical cost of Investments
Investments comprise the following:
Listed on Stock Exchange
Cash deposits
The School had investment holdings of greater than 5% of overall market value in
the following:
Charities Official Investment Fund
J.P. Morgan UK Strategic Equity Income Fund
M&G Equities Investment Fund for Charities		 2021
£’000
440.0
(1.7)
48.2

486.5

233.8

282.9
203.6
486.5

219.9
32.4
26.2		 2020
£’000
445.2
4.4
(9.6)
440.0
235.4
234.8
205.2
440.0
186.8
23.3
20.7

7 DEBTORS Fees receivable 6.2 55.2 Other debtors * 12.3 80.4 Prepayments and accrued income 313.9 347.6 332.4 483.2

* Included in other debtors is £4,160 (2020: £5,154) falling due in more than one year

23

Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2021

8
CREDITORS: Amounts falling due within one year
Advanced Fees received 1 year in advance (see Note 9(a))
Other Fees received in advance
Bank Loans repayable within 1 year (see Note 9 (c))
Other taxes and National Insurance contributions
Trade Creditors
Other creditors
Deferred Income
Accruals

9
CREDITORS: Amounts falling due after more than one year
Advanced fees (see Note 9(a))
Final term deposits (see Note 9(b))
Bank loans (see Note 9(c))		 2021
£’000
4,300.4
954.0
528.5
224.5
92.3
170.1
63.6
1,007.2

7,340.6

4,690.1
2,104.1
4,669.4

11,463.6
 2020
£’000
3,795.7
761.5
514.6
214.0
417.3
163.9
34.7
1,069.5
6,971.2
3,097.2
1,791.5
5,190.6
10,079.3

9 (a) Advanced fees

Parents are offered the opportunity to pay tuition fees in advance. Certain parents have taken advantage of this offer and have entered into an arrangement with the School to pay tuition fees in advance. Advance Fee payments are paid direct to the School and may be returned, subject to specific conditions, on the receipt of one term’s notice. Assuming pupils will remain with the School the amounts held in respect of fees falling due in more than one year will be applied to offset tuition fees as follows:

Fees due in 1 – 2 years 2,657.3 1,994.5
Fees due in 2 – 5 years 2,014.1 1,084.0
Fees due in more than 5 years 18.7
 18.7
4,690.1 3,097.2
Fees due within 1 year (see Note 8) 4,300.4
 3,795.7
8,990.5
 6,892.9
The movements during the year were as follows: -
Balance at 1 September 6,892.9 7,044.5
Amounts received (net of refunds) during the year 5,893.3 3,815.0
Amounts utilised in payment of fees (3,795.7)
 (3,966.6)
Balance at 31 August 8,990.5
 6,892.9
9 (b) Final Term Deposits

24

Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

All new pupils are required to pay a deposit which is then applied against the pupil’s final term’s fee bill. Applying reasonable assumptions regarding the time pupils will remain with the School the deposits held will be applied to offset fees for their final term as follows: -

Deposits due to be refunded in 1 – 2 years
Deposits due to be refunded in 2 – 5 years
Deposits due to be refunded in more than 5 years
9 (c)
Bank Loans
Bank Loans are repayable as follows as follows: -
Repayments within 1 – 2 years
Repayments within 2 – 5 years
Repayments in more than 5 years
Repayments within 1 year (see Note 8)		 2021
£’000
289.6
552.7
1,261.8

2,104.1

541.6
1,496.5
2,631.3

4,669.4
528.5

5,197.9
 2020
£’000
230.1
451.8
1,109.6
1,791.5
521.2
1,562.7
3,106.7
5,190.6
514.6
5,705.2

The School has drawn down bank loan facilities totalling £7.5m to part fund the construction of the new Sports Hall and Sixth Form Centre, and the Performing Arts Building. These facilities are secured on the School’s freehold land and buildings. Of the £7.5m loan facilities drawn down:

25

Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

10 RESTRICTED Balance 31 Incoming Resources Transfers Loss on Balance 31
FUNDS August resources expended revaluation of August
2020 investments 2021
£’000 £’000 £’000 £’000 £’000 £’000
Scholarship, Prize 395.0 7.5 (7.5) - 48.2 443.2
and Bursary Funds
School Development - 43.6 - (43.6)* - -
Fund
Channing Alumnae 15.0 8.7 (2.8) - - 20.9
Channing Association 30.0 22.8 (30.4) - -
 22.4
440.0 82.6 (40.7) (43.6) 48.2 486.5

A description of each restricted fund and its use can be found on page 6.

11 FUNDS - Tangible Creditors
ALLOCATION OF fixed Investments Net current falling due 2021
NET ASSETS assets Assets after more than Total
/(Liabilities) 1 year
£’000 £’000 £’000 £’000 £’000
Restricted funds* - 486.5 - - 486.5
Unrestricted funds 30,561.9 - 3,360.5
 (11,463.6)
 22,458.7
30,561.9
 486.5
 3,360.5
 (11,463.6)
 22,945.2
2020
Total
Restricted funds* - 440.0 - - 440.0
Unrestricted funds 29,278.5
 -
 (393.5)
 (10,079.3)
 18,805.7
29,278.5 440.0 (393.5) (10,079.3) 19,245.7

*Included in Restricted Funds are cumulative unrealised gains of £252,643 (2020: £204,522).

26

Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

12 SHARE CAPITAL

The company is limited by guarantee and has no share capital, members having a liability not exceeding £5 each.

13 PENSION COMMITMENTS

a. Teachers

Teachers are members of the Teachers' Pension Scheme England and Wales (TPS). This scheme is a multi-employer, statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Scheme Regulations 2014. Membership is automatic for full-time teachers and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract. Teachers are able to opt out of the TPS.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

As the TPS is a multi-employer pension scheme, the School is unable to identify its share of the underlying assets and liabilities of the scheme.

Accordingly, the School has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The School has set out within this note the scheme information available and the implications for the School in terms of the anticipated contribution rates.

Valuation of the Teachers’ Pension Scheme

Not less than every four years the Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education in April 2019. The valuation reported total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218 billion, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £198 billion giving a notional past service deficit of £22 billion.

As a result of the valuation, new employer contribution rates were set at 23.68% of pensionable pay (including a 0.08% employer administration charge) from September 2019 onwards. This compares to 16.48% during 2018/19.

During the year the employee contribution rate ranged between 7.4% and 11.7% depending on a member’s salary.

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

The pension charge includes employer contributions payable to the scheme, which amounted to £1,264,815 (2020: £1,179,277). As at 31 August 2021 there were outstanding contributions payable to the scheme of £151,560 (2020: £145,862) included in other creditors. The contributions of the School represent a minor proportion of the payments into the scheme.

27

Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

b) Other staff

The School also operates defined contribution schemes for other staff. The assets of these schemes are held separately from those of the School in funds administered by insurance companies. The pension cost charge represents contributions payable in respect of these schemes and amount to £224,220 (2020: £220,055). £18,997 (2020: £18,170) included in other creditors was payable to these schemes at the year end.

14 COMMITMENTS

As at 31 August 2021 the School had the following capital commitments:

2021 2020
£’000 £’000
Authorised and contracted for Nil
 1,311.4

15 OPERATING LEASE ARRANGEMENTS

As at 31 August 2021 the School had minimum lease payments under non-cancellable operating leases, in aggregate, as follows: -

Buildings
£’000
Equipment
£’000
Amounts payable:-
Within one year
11.3
114.7
Within 2-5 years
-
86.0

11.3

200.7

2020:
217.5
274.0		 2021
£’000
126.0
86.0

212.0
 2020
£’000
317.1
174.3
491.4

16 RELATED PARTY TRANSACTIONS

There were no other transactions with related parties during the year to 31 August 2021 or during the year to 31 August 2020 and there were no balances outstanding at the previous or current year-end.

No member of the Association or Board of Governors received any remuneration or other benefits from the School. Two (2020: two) Governors were reimbursed travelling and incidental expenses totalling £626 (2020: £775). The insurance premium paid by the School includes an element of cover for ‘directors’ (Governors).

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