Channing House Incorporated, Highgate (Limited by Guarantee) REPORT AND FINANCIAL STATEMENTS For the year ended 31 August 2024 Company No: 00063121 Registered Charity No. 312766
Channing House Incorporated, Highgate GOVERNORS, OFFICERS AND ADVISORS 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 20 March 2025. GOVERNORS The Board of Governors may appoint any member of the Association as a Govemor, 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 othetwise indicated the following were Governors during the year and to the date of signing this report: Mr% L Leigh* Mr JAG Alcxander Mrs C Chandler-Thompson Rev D C05tlcy Mr% L Crislic MrR Hirji Mrn C Hulmc-McKibbin Mr D Oliver Mrs P Peck Mr S Prior Ms B RLnloul * Ms A Ilenloul Mr WJH Spcar5 Dr A Sulton Mr K Van der Sandc M5 D Storte FCA, BA (Hon8)(Manchesier) (Chair) CA, IJA and MA (London) BA (Exeterl FIA (Open University) BA (Bristol) MBA (Manchester) B.FAI Icdntab) M Phil (Oxford) MBA (Oxon) BS¢ IHon51{Rcading) MA (Yale) BA (Hons) Oxford BA ISOAS), MBA MB ChB MAIHons) Dip Arch RIBA BA{Flons) Durham (R¢lir¢d 31 August 2024) (Relired 14 March 2024) Members of the Finance and General Purposes Committee MEMBERS OF ASSOCIATION The Members of Ihe Association, except as otherwise indicated, throughout the year were. in addition to the Govemors listed above.. Mr SD Barber Professor l.IG Beale Mrb D Bond Mr S M D Broivn M5 CF.A Budgetl-mcakin Mr JM 13urn8 13arone55 J Cous5ins Baroness C Cox Dr J l)acre Miss JAM Davidson Dr Al) Hogg Mrs S Moloney Mrs J Ottcrbllrn Hall Mrs D Patman Mrs C Richards Miss M Rudland Mr5 VA Schilling Mr M Steiner Dr T Stone Miss EM Tucker Dr DJ Williams Dr l)L Wykes IISC Il•xon) fcA MA {Oxon) BA {Caniab) BA {Dun¢lm) BA {Kenl) MA Ioxon) MA Icanlab) Msc (Econ) PhD Bsc Bsc (London) MA {Oxon) PhD (London) SRN RHV - Rctircd 20 May BA (Bristol) FRICS ACIArb BSc.Arch (l.ondon) Bsc MCSP MA (Oxon) MA {Caniab) PhD MA Icantab) - D¢ceased 18 May MB Bch Bsc PhD
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 l 000 BXI ILT SOLICITORS Dentons UKMEA LLP One Fleet Place London EC4M 7WS Veale Wasbrough Vizard5 LLP Narrow Quay House Narrow Quay Bristol SI 4QA AUDITOR RSM UK Audit LLP 25 Farringdon Street London EC4A 4AB REGISTERED OFFICE Channing Schwl Highgate Hill Highgate London N6 5HF
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 A550ciation. having a liability not exceeding £5 each. The School was established under a Memorandum of Associalion which established Ihe objects and powers of the charitable School and is governed under ils Articles of Associaiion. The company is a registered charity with charity nuinber 312766 and company number 00063121. The Govemors of the School, who are also the charity Irustees and company directors, and the School's principal officers and advisers are listed on pages l and 2. Whenever Governors are referred to in this report Ihis subsumes their roles as trf)th charity trustees and company directors of Channing House Incorporated. Highgate within the meaning of Company Law. STRUCTURE, GOVERNANCE AIYD MANAGEMENT The Governors determine the general policy of the School. The day-to-day rnanagement of the School is delegated to the Headniislress and the Bursar. Governors determine ihe remuneration of key managemenl personnel through a Remuneration Committee. In setting the remuneralion of key personnel this committee takes note of nalional pay scales, individual performance and internal and external benchniarking as necessary. There have been no transactions with the related parties of the School, with the exception of the key management personnel remuneratioll as disclosed in Not¢ 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 Ihe School. Potential candidates who possess the requisile personal and specialist ski115 are identified, including through ihe 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 appropriale training and induction is arranged. On appointmeiit. Governors are briefed on their responsibilities as Directors. Truslees and Governors. They are also encouraged to attend training courses on ihe roles of Governors run by The Association of Governing Bodies of Independent Schools IAGBIS). Governors are also given regular presentalions by Heads of Department and Key Management Personnel on specific curricular and Wdstoral developments. STATEMENT OF PROVISION OF INFORMATION TO AUDITORS The Governors in otrice on ihe date of this rew)rt have confimied. as far as they are aware. thai ihere is no relevant audit information of which the charitable company's auditor is unaware. Each of the Governors has confirnied that Ihey have taken all the steps that they ought to have taken as Governors to make ihemselves aware of any relevant audit information and to establish that the auditor is aware of that inforn)alion. AUDITOR RSM UK Audit LLP has indicated its willingness to continue in Olce. PUBLIC BENEFIT The Governors confimi thal. to the best of their knowledge and belief. they have complied with the duty in the Charities (Accounts and Reports) Regulations 2008 in respect lo having due regard to the public benefit guidan¢e published by the Charity Commission. The School provides public benefit in many ways. The School provides bursaries genernlly on entry to the School at Year 7 and Year 12. The School has a policy to make awards on the basis of ability to pay. Bursaries aiid Coiicessions of £1.211,726. were given during the current year (2023: £1,177,960). The c4)ntribulion is consistent with previous years. Additionally. the School has continued to develop its partnership programme throughout the year. At the centre of the school's partnership is its relalioiiship with Highgale Newtown Community Partners (HNCP) where they work closely with HNCP, Saint Aloysius College and Brookfield School to support other local schools under the umbrella of their Education Plus Programme. The Schools are eurrenily working closely with 9 schools in lolal and in ex¢ess of l 00 pupils per week attend clubs provided by Channing. In addition. Channing hosled its fourth successful Summer Camp in July for sludenls from Partner Primary Schools. The School'5 partnership with HNCP also extends into the
Channing House Incorporated, Highgate GOVERNORS, REPORT community and ihroughoul the year Channing has hosted monthly Community Teas as well as supporting lunch clubs in local venues. The School also enjoys a strong and mutually supportive partnership with St Aloysius College which as well as including a number of joint aclivities also extends to the sharing of resources and facilities. This also involves extending invitations lo St Aloysius and oiher partner schools to attend workshops, training evenls and presentalions 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 use both by Middlesex County, two local netball clubs and the local cricket club. The School's playing fields are also used by Hampstead Archery Club and the loeal community including use by The London Borough of Hariiigey to support local infraslruclure projects. The School generally makes its facilities available to local ¢ommunity groups for free or for a nominal ¢harge. 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 balanced education. The School was inspected by the Iiidependenl Schools Inspectorate in June 2022 during which the quality of ihe School's academic and other achievements and the quality of ihe pupils personal development were both considered excellenl. In addilioii it was considered that the School wsts compliant with Ihe standards in ihe schedule to the Education (Independent School Standards} Regulations 2014, and relevant requirements of the statutory framework for the Early Years Foundation stage and a5s0cialed requirements. The School's success is achieved by a combination in equal measure of academic excellence, pastoral care and breadth of extra and co-curricular activities. The Sch(1.5 Unilarian ethos encourages its pupils to be intellectually curious, open-minded and respectful. Details of the School's strategic objectives lo achieve this are provided in the Strategic Report that follows. REVIEW OF ACHIEVEMENTS AND PERFORMANCE 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 10 2025. The School conlinue5 to make progress against these objectives. StrAte ic Ob ectives 2020 10 2025 To provide An txtellent and relevant education. free (rom undue pressure, that inspires pupils to achieve their full potential. The School continued to deliver excellent academic results in 2024. 89.3 /0 {2023 83.1 0/0) of pupils gained A*_B grades at A level and the p¢entage of all GCSE results graded 91817 was 85.2 /0 (2023- 850/0) with 66QA (2023: 64.60/0) graded 918. The school has conlinued to build a ¢ulture of fearless effective study and has also undertaken a curriculum review at the Senior School, the first pliase of which has been implemenled. During the course of the year. a whole scliool reading inilialive has also been introduced alongside the Conlinued development of Ihe Extra Curriculum offer at both the Senior and Junior schools to provide greater opportunitie5 to all pupils. To 5UPPOrt personal development which puts wellbeing at the heArt of our p#$tor41 provision. The School continues lo develop ils provision for pastoral care, furiher developing the support which the School can provide to support pupil Mental Health. The use of Child Protection On-line Monitoring System has significantly enhanced the ability of the school to provide better coordinated support to pupils whilst Tooled Up provides research based pastoral support for pupils and parents. The school introduced phone pouches during the year which has also helped ihe sch(Trol belter manage the use of niobile personal devices in school. The Channing Characters developed at the Junior School are firmly embedded in the everyday school life of the Junior pupils. Careers education and guidance as well as preparation for University in the UK and overseas remains an area of focus across the School and it has been pleased lo welcome a wide selection of eminent speakers thrOUOUt the year. The School also welconies students from local schools to share in these opportunities. The school's sports programme has continued to develop during the year with increasing number of opportunilies available to all pupils includtng a growing number of competitive
Channing House Incorporated, Highgate GOVERNORS, REPORT fixtures with other local schools. To embrAce modern teehnology And use 1¢ as a means to enhAnee pupils, indepettdence as learners to preplre them for the future. The School conlinues to invest in and embra¢¢ new technology. recognising Ihe opportunities it provides to enhance independence and collaboration amongst students and enh2need efficiency in the wider operation of the School. The school aspires lo be a Google Reference School and many staff have a¢tiv¢ly ¢ommitted io the Google Educator Programme. The School also remains aware of Ihe risks that technology can present to young people and continues to address thi5 through educating pupils and by supporting parenls including offering digital safety ii)formalion events. In addition to combat this the School has pul in place ihe necessary policies and safeguards around the use of technology in School. These are being kept under regular review to ensure that the school meets the new standards for online Monitoring and Filtering in schools. To provide a secure, safe and healthy environment. The School continues to put pupil safeguarding and the safety of its surroundings at the heart of the School's operation, ensuring that staff and pupils are aware of the strategies and procedures in place lo minimise the risk to pupils. The new pastoral structure continues to prove highly effective with greater paCity lo support the needs of pupils. Safeguarding provision continues to be kept under review lo reflect developmenls in the School as well a5 legislative changes. The School also continues to develop ils well-being strategies for both pupils and staff. To develop further opportunities for Scienc4 Technolo* Engineering & Maths (STEM). The developinent of STEM is recognised as an ongoing priority for the School across all Key Stages and is reflected in the School making additional resources available to develop STEM provision within the School. The School recently reviewed ils Science curriculum providing greater Choice lo students at GCSE. The School is always seeking new ways to supplement the core STEM curriculum wilh extra curricular provision which now includes a wide range of clubs and activili¢s including Robotics, Design 2nd Technology and the CREST Awards. The Senior School has appointed STEM Ambassadors in each forni to help proinote STEM a¢r055 th¢ student body. The sch(Kil again enjoyed success as finalists in the Teen Tech Competition 6. To manage the School's resourees effectively And to ensure that the School tAn Continue to attract the brightest students. As a result of exercising souiid control over the School's finances. tl)e School has been able to continue to invest in improving facilities both at the Senior and Junior School. The School recently commenced a development project to extend and upgrade Brunner House with a view to improving the provision of Science in the School. To recognise #nd promote our social responsibility. The School is aware of its social responsibility to both the local and wider communities. The School continues lo develop links with the local community including Highgate Newlown Community Partners and a number of local Schools including Brookfield Primary School, St Aloysius College and St Joseph's school. The volume of partnership work continues to in¢rea5e and plans are in place lo conlinue to develop this part of our provision. This objective also includes the Sch¢)ol's wider commitment lo sustainability. The pupils at both the Junior and Senior School are increasingly active at promoting sustainability initiatives in the Sch(K)l including Clean Air Days, meat free days and also striving to improve our recycling rates. The school declared a Climate Emergency during the year and has put in place a comprehensive plan of studenl-led actions lo raise awareness of sustainability across the school community. The School was again awarded the Green Flag (with distinction) this year. The School completed work to identify its carbon foolprint and is now considering what further action the school can now lake to reduce its carbon footprint. Review of other athievemenls The School continues to support a very large number of charitsble and cultural aclivities. In particular it makes a significant contribution to the community through many local activities includiiig musical and sporting events as well as participating in local sporting and community evenls. The Young Enterprise scheme and the Duke of Edinburgh Award programme continue lo enjoy significant popularity and the Forest School learning programme ha5 been further developed in the Junior School and forms a core part of the curriculum. Additionally during the year th¢ School raised funds for its chosen charities. These funds were either collected by the School and forwarded to the relevant charity or remitted directly to the relevant charity. FINANCIAL REVIEW The Statement of Financial Activities on page 14 shows nel income of £4,053,200 (2023.. £3.539.400).
Channing House Incorporated, Highgate GOVERNORS, REPORT The result for the year and the year end financial position of the School is considered satisfactory and is consistent with tl)e School's planned target. During the year capital expenditure of£476,IM)0 {2023: £36.4W) was incurred. The Balance Sheet on page 15 shows nel current assets of £16,638.400 (2023:£7.146,400). The significant increase in the School's net current asset position 15 attributhble to the net income generated during the year and fees received in advance ofacademic year 2024125. DOIYATIONS Income for the year includes £8,200 12023: £2.700) of reslri¢t¢d Donations, £6,250 of which was altributable to restricted Scholarship and Prize funds, and, £1.950 10 the developmenl of new Sport, Sixth Form. Music and Performing Arts facilities. and the Junior School redevelopment. Diiring the year the School has not undertaken any significant fundrnising activities and no third paty fundraisers have been engaged. FUTURE PLANS The Governors have agreed to continue to develop the School in line with the strategic objectives above which all build on th¢ overall aim thai Channing pupils should enjoy success at School and beyond. FUNDS HELD Notes l O and I I to the financial statements sets out an analysis of the School's restricled and unrestricted funds of £531,000 (2023.. £484,600) and £33.311,900 12023: £29,305.100) respeclively and their attributable assets and liabilities. These net assets are su1Clent to meel the obligations on a fund by fund basis. The School's tangible assets are all held for use in ihe School. It is the School's long term wTrlicy 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 ils buildings and facililies for the benefit of current and future generations of pupils. With this in mind. rather than set a specific target for free reserv¢s, when considering the School's available reserves. Governors lake into account the long lerni bank facilitieslloans in place but undrawn at the year end. credilors falling due in more than one year and any contracted and auihorised capital commitments. Creditors falling due in more Ihan one year comprise the fund5 held in respect of final term deposits and advance fees, and long temi bank loans drawn down. Capital commitments comprise costs authorised by Governors in respect of development projects in progress which are unspent at ihe year end. Taking account of the above definition of the School's free reserves. the free reserves al the year end comprise the sum of the School's confirmed bank loan facilities undrawn plus nel current assets less unspent development project expenditure. On this basis at the year end the Sch¢)ol's free reserves were around £7,900,000 (2023.. £7,100,000). Substantial sums have been invested Into the School over recent years and Governors have auihorised a continuing prograinme of refurbishment. development and investment in order to maintain and enhance the facilities for pupils. Whilst this programnie is continuing and ihe long lerm bank loans are being repaid, the School is unlikely to be in a position lo 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 2025 and the market value of the School's propeity, which is not currently reflected in the reserves, the School's level of reserves at the year end are satisfactory. This assessment reflects the intention of the governors to continue to develop the School estate and facilities 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 exeISed to ensure the School ¢an nieet its ongoing educational needs and continue to invest in ils estate and facilities. The Governors are satisfied that the School has sufficient available cash and borrowing facilities to meet its stralegic objectives.
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Channing House Incorporated, Highgate GOVERNORS, REPORT other members of the School's Senior Leadership Team. General controls used by the Governors to ideiilify and assess risks during ihe year include- Formal agenda items for Governors. Committe¢ meetings Regular review of the School's Risk Regisler which is reviewed temlly by the Governing Body Sub Committees to oversee key areas of School aclivity including education, estates. and finance. Ad hoc Committees are also established from time to time to review specific aspects of School activity including such areas as School strategy, the appointments of new governors and the School's pension arrdngements for staff. Comprehensive strategic planning. budgeting and management accounting Established organisational structure and lines of rq)orting Formal authorisation and approval levels for financial transactions and approval of contrdcts Regular Health and Safety and Safeguarding reviews and inspections Maintaining appropriate insurance Regular Inspection by the Independent Schools InsF¢Ctorale Through the above risk management processes. the Governors are satisfied that major risks are identified and as far as practicable adequately miligaled. It is recognised that systems can only provide reasonable. but not absolute. assurance that major risks have been adequalely managed. The Inain risks ihal the Governors have identified and ihe plans to manage those risks are= Reputational A risk to the reputation of the School brand such thal there is a material impact on current aiid future pupil numbers and the ability of the School to attract high quality staff. In order to manage this risk. the School ensures Ihat its policies for recriiitment, safeguarding and Healih and Safety Put pupil safety and wellbeiiig al the heart of the School and that compliance wilh these policies is checked on an ongoing basis by the Leadership Team and the Governors. The school also ensures that il engages with pupils and parents to ensure that any Special Educational Needs {SEN) and English as an Additional Language (EAL) needs are identified and that appropriate support is put in place. A comprehensive training programme for staff, ongoing monitoring and management of policies and a culture of openness and trust between pupils and staff are also intended lo safeguard against this risk. In addition the School ensures that the Governors exercise oversight over all of these important issues Political Risk The independent education sector does not currently enjoy strong politi1 support, despite the efforts of the Indepeiident Schools Council (ISC) and member Schools lo demonstrate the financial and other benefits lo the economy independent schools provide. These benefils include reducing the overall costs of eduealional provision to the Exchequer, local employment of staff and the generation of overseas earnings. The sector also provides significant amounts of Public Benefit in the fomi of bursaries and also where independent schools work alongside and partner with niainlained schools and otlier local organisalions. On 29 July 2024. The Labour GoverrEment announced ils intention lo add 20% VAT on School Fees and oiher charges from l January 2025 as well as to remove Charitable Business Rale Relief for Independent Sch(M)Is from l April 2025. In the Budget on 30 October 2024 the Government confirmed these intentions. In order to miligate ihis risk and identify the potential financial impact such. measures would have, the School continues to undertake ils own intemal risk modelling. The School recognises thal there are some limited measures it can undertake to reduce ils cost base, or increase its income to mitigate against the risk of increased laxalion. The scope for such measures will noi fully offset the impact of some of the measures being proposed if the School felt unable to pass on the costs to fee payers due to the potential impact on pupil numbers. In these scenarios the financial viability of the School and its ability lo meet current legal and financial commitments would need careful consideration and if necessary appropriate action iaken. In order to mitigate against the current lack
Channing House Incorporated, Highgate GOVERNORS, REPORT of political support, Ihe School will conlinue to work with the ISC, ISBA GSA. IAPS and HMC to articulat¢ clearly the benefit the School provides to its sludents and ihe local community and to Seek clarity on the practical implications of iinplementing VAT on school fees. There is a significant concern that Channing along with other schools will not have sufficient lime to prepare for the implementation of VAT by December 2024 when fee bills for January are raised. Digilal risks There is a risk that with an increasing reliance on digital technology in all areas of the School. insufficient investment in syslein integrity. system security and resilience. training or human error makes the School increasingly susceptible io a cyber attack. The School considers that such a risk might result in the School operations being severely impacted which in turn would jeopardise the School's ability to effectively educate pupils and lo support the wider activities of the School. The School manages this risk by continuing to update and invest in the School's information systems to ensure that they meet the School's needs and to provide enhanced resilience. The School also continues to educate staff. pupils and Governors how lo use digital technology safely and effectively. The School is also aware ihat it must continue to ensure that its digital provision is kept up to date such that the School can maintain it5 excellent provision of teaching and learning and to further improve the School's eicienCy. The School is currently implementing its new Digital Strstlegy to ensure thal ils digital provision is consistenl witli the School's longer term strategic objectives. The first slep in this process is to ensure that staff, pupils. parents and Governors are all given ihe right skills lo optirnise their use of the School's digital provision in a safe and effective manner. Financial Risk In addition to these risks, the School must also ensure that the School remains financially viable. Financial stability is a key priority for the School. In particular the School must generate sUrcIent cash flow lo provide adequate resources to eiisure a Safe, secure and engaging educatiollal environment. to meet loan obligalions and to continue iiivesting in the School's facilities and estate. This risk is managed by ensuring sound long lerni planning with clear and hallenging financial targets which not only consider the operation of the School. but also the wider context in which the School operates. Governors wilh significanl financial and business experience provide oversiglil of the School's finances alongside the Finance Committee which reviews the detailed finances of Ihe School al least lermly drawing on external advice as required. The School continues to be vigilant in assessing ihe impacl of identified risks oii the School's finances. This has included modelling various scenarios as part of the School's financial planning. In particular. measures that ihe School keeps under eonsiderdtion in order to mitigate this risk include clianges to the School's provision and the associated cost implications. cost savings. adjustments to staffing and deferring or cancelling planned programmes of both revenue and capilal investment. During the year, the school underlook a pension consultation with teaching staff. This has resulted in the s¢h¢)ol continuing to offer membership of the Teachers Pension Scheme (TPS) to existing staff. Newly appointed leaching staff are no longer enrolled in the TPS but instead are offered membership of the Aviva Pension Trust for Sndependenl Schools (APTIS). The Governors, Report and the Strategic Report incorporated within it were approved by the l)oard of Governors {in their role as dire¢lors) and signed on its behalf by 14ip L Leigh Chair of Governors 21 November 2024 J Hill Bursar and Company Secretary 21 November 2024
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 accordanee with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally A¢¢epted Accounting Practice)- Company law requires the Governor5 to prepare financial statements for each financial year which give a true aiid fair view of ihe state of affairs of the charitable company and of the incoming resources and application of resourees. including ihe income and expenditure, of the charitable company for that period. In preparitlg these financial statements. the Governors are required to: Select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP. make judgments and estimates that are reasonable and prudenL state whether applicable UK Accounting Standards have been followed, subject to any material deparlures disclosed and explained in the financial statements. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy al any time the financial position of the charitable company and enable them lo ensure that the financial statements coinply with the Companies Act 2006. They 2re also responsible for safeguarding the assets of tl)e charitable company and hence for taking reasonable steps for the prevention and detection of fraud and oiher irregularities. 10
Channing House Incorporated, Highgate INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS Opinion We liave audited the financial statements of Channing House Incorporated, Highgate (tlie 'charitable company,) for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sl)eet, 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 Siandards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generdlly Accepied Accounting Practice). In our opinion the financial statements: give a Irue and fair view of the state of the charitable company's affairs as at 31 Augusl 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with ihe requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Audiling (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in ihe Auditor's responsibililies 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 oiher 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 th¢ financial statements, we have concluded thal the Governors, use of ihe going concern basis of accounting in the preparation of the financial statements is appropriale. Based on the work we have perfornied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the cliarilable company's abil ity 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 respecl lo going concern are described in the relevant sections of this report. Othcr information The other iiiformation comprises the inforniation included in the Governors. Report other than the financial statements and our auditor's rewrt ihereon. The Governors are responsible for the other infomiation contained within the Governors, Report. Our opinion on the financial slatements does not cover the other inforniation and, except to the extent otherwise explicitly stated in our report. we do not express any forni of assurance conclusion thereon. Oiir responsibility is to read the other information and, in doing so. consider whether the other inforn)ation 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 Inisstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Aet 2006 In our opinion, based on the work undertaken in the course of the audit: the infornialion given in ihe Governors, Report, which includes the Directors, Report and the Strategic Report prepared for the purposes of company law. for the financial year for which ihe financial stat¢ments are prepared is consistent with the financial slalements: and
Channing House Incorporated, Highgate INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS The Directors. Report and the Straiegic Report included within the Governors, Report have been prepared in accordance with applicable lecyal requirements. Matters on whieh we are required to report by exception In the light of tlie knowledge and understanding of the charitable company and its environment obtained in the course of the audil, we have not identified malerial 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- adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not vistted by us; or the financial statemenls are not in agreement with the accounting records and returns: or certain disclosures of trustees. remuneration specified by law are not made. or we have not received all the inforniatton and explanations we require for our audit. Responsibilities of Governors As explained more fully in the Statement of Governors, responsibililies set out on page 10, the Governor5 (who are also ihe directors of the charitable company for ihe pUoseS of company law) are responsible for tlie preparation of the financial statements and for being satisfied that they give a true and fair view. and for sucli internal control as the Governors delemiine is necessary to enable the preparation of financial slatements 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, Matte related to going concern and using ihe 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 stalements Our objectives are to obtain reasonable assurance about whether the financial slalements 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 ¢xpected to influence the economic decisions of users taken on the basis of these financial statements. The extent to Ivhich the audit was considered capable of detecting irregularities, including fraud Irregularitie5 are instances of non-compliance with laws and regulalions. 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 amounls and disclosures in the finallcial 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 regulalions identified during the audit. In relation to fraud, the objectives of our audit are to identify and assess the rtsk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audil evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately lo 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 ensiire that the entity's operalions 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 engageinent team- obtained an underslanding of ihe nature of the sector, Tncluding the legal and regulatory frainework that the charitable company operales in and how the charilable company is complying with the legal and regulatory framework. 12
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Channing House Incorporated, Highgate STATEMENT OF FINANCIAL ACTIVITIES For tlie year ended 31 Augiist 2024 Note Unreslricled Reslricted Fund5 2024 Unrestricted Rcstrtcted Funds £'ooo 2023 INCOME FROM: Donations Charitabl¢ Aclivities: 14_4 School Fees receivable Other income Investments Investment income Bank interest 24,397.7 898.9 24J97.7 22.171.6 672.9 22,171.6 780.2 107.3 854.1 860.2 263.4 265.5 Total Income 26,157.0 119.6 26,276 23.108.0 121.3 23,229.3 EXPENDITURE ON.. Raising funds: Bank loan interest 123.6 123.6 153.4 153.4 123.6 123.6 153.4 153.4 Charitable activities: School operating costs 22,028.6 95.4 22,124.0 19.422.9 109.8 19,532.7 Tolal Expenditure 22.152.2 95.4 21247.6 19.576.J I.8 19,686.1 Gainl(Loss) on revaluation of inveslmenls - unrealised 24.2 242 13.8) 13.81 Net Income before transfers 4.(M)4.8 48.4 3.531.7 3,539.4 {2.0) 10.7 Transfers between funds (10.7). 10 Net movement in funds 4.IMkn.8 4.IIS3.2 3.542.4 13.0) 3,539.4 Balances broughi forward al I September 29,305.1 484.6 29.789.7 25.762.7 487.6 26.250.3 Balances carried forward at 31 August 33.311.9 531.0 33842.9 29.305.1 484.6 29.789.7 14
Channing House Incorporated, Highgate Company No: 00063121 BALANCE SHEET As at 31 Aiigust 2024 Nol 2024 £'ooo 2023 £'ooo FIXED ASSETS.. Tangible assets Investments 29,345.9 531.0 29,765.3 484.6 29,876.9 30,249.9 CURRENT ASSETS: Debtors Cash at bank and in hand 1,015.2 25,978.9 628.7 14,938.5 26,994.1 15,567.2 CREDITORS.. Amounts fallin% due within one year {10.355.7) (8,420.8) NET CURRENT ASSETS 16,638.4 7,146.4 TOTAL ASSETS LESS CURRENT LIABILITIES 46,515.3 37,396.3 CREDITORS: Amounts falling due after more than one year (12.672.4) (7.606.6) TOTAL NET ASSETS 33,842.9 29.789.7 REPRESENTED BY: RESTRICTED FUNDS 10 531.0 484.6 UNRESTRICTED FUNDS Retained Income 33Jll.9 29.305.1 TOTAL FUNDS 33,842.9 29.789.7 These financial statements were approved by the Board of Governors and authorised for issue on 21 November 2024 an n its behalf by: LLei h(Ch ir) 15
Channing House Incorporated, Highgate TATEMENT OF H FLOWS For the year ended 31 August 2024 Ne$ 2024 £'ooo 2023 'ooo Net cash from operating activities Cash IIow5 from investing attivitTts (A) 11.281.4 2.786.5 IB) 247.2 2.870.6 Cash floJY5 from IlnaneinR Aetivities Ici I42> (1.316.9} Inerease in CA5h And eash eqiiivAlents the year Cash and cash equivalents al I S¢ptcrnl*r 11,040.4 1.553.7 11.938.S 13.384.8 'rDt81 cash cash equiYAlent5 At 31 Au%ust LS.978.9 14.938 3 {Al- f4ct emsh provided by op¢r8ting activities Net Inconiiiig kesouTces the siaiemeni of financial activilies) I15ted for-. 4,1153.2 3.539.4 Unrealised GainlLoss on revaluation of inv¢5tm¢n15 124.21 D¢pr¢ciation Inol¢ 51 Bank loan ini¢rest payable Investiiient incomc rcceivablc 123.6 153.4 19.21 (265.5) 1187.7} 11.442.21 Baiik iiitcresl rcccivablc 1860.2) Ilncreasel iii debtors Increase l{De¢reaselin creililors 7A88.9 Plet cash provided by operattng 4ttivitits 111}_ CAsh IIoiv5 from invesling aclivities Invesiment Incomc 11281.4 ]3ank Intcrcst reccived 860.2 265.5 Bank loan intcrest paid Pur¢liase oftangible assets (Incretlse) in investmen( 1123.6) 1476.0) 212 1153.4} (36.41 247.2 {Cl- Cash llows from financing aettvititt Repaynicnts of bank loans {488.21 (1,316.91 IDI- AnAlysis ofch4nges ID nei dcbt At I Sept 2023 Cash Ilow$ Al 31 Aug 2024 Cash and cAsh equivalents 14.938 11,040.4 25,97&9 Borroiving5: l)cbl diie iyiihin one year Inotc 8} Dcbt due aftei oiie year Inolc 91¢)) (4.9) 106.3 (381.6) 2481.2 16
Channing House Incorporated, Highgate ACCOUNTING POLICIES For tlie y¢ar ended 31 August 2024 BASIS OF FINANCIAL STATEMENTS The accounts of the School are prepared in accordance wilh the Companies Act 2006, and with the Charities Statement of Recommended Practice ('SORP (FRS102)' effective l 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 d¢finilion of a public benefit entity under FRSIO2. The financial statements are prepared in sterling, which is the functional currency of the School. Monetary amount5 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 Scliool's income. Fee income is billed and received one terni in advance. Forecasts are produced taking account of the timing and quantity of fee income, likely expenditure profile. These forecasts are provided to the Governors. Oil this basis no material uncertainties that may cast significant doubt about the ability of the School to continue as a going concem 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 assels 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 io be reasonable in the circumstances. The estiinates and underlying assumptions concerning ihe future are reviewed on an ongoing basis. Revisions to accounting ¢stimales are recognised in the period in which the estimate is revised. Accounting estimates and assumptions. will, by definition, seldom equal the actual results. DONATIONS, LF.GACIES, GRANTS AND OTHER VOLUNTARY INCOME Voluntary income is accounted for as and when entitleinent arises, the aniount can be reliably quantified and the econoinic benefit lo 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 dewsit 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 mor¢ than one cost category in the Sialement of Financial Activities is apwrtioned on ihe 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. 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 17
Channing House Incorporated, Highgate ACCOUNTING POLICIES For tlie year ended 31 Augiist 2024 of new buildings is added to fixed assets although repairs, alterdtTons and improvements that do not materially enhance tlie economic benefit of the bui Idings are expensed as incurred- sucli costs are often substantial. Costs inciirred 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 TS shown in nole 5. Fiimiture and leaching equipment are expensed in the period of acquisition. Such items will generally cost less than £20,000 per individual item and will include computers. equipment, furniture and ancillary items. DEPRECIATION Depreciation is calculated by reference to the cost of fixed assets USTng 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) Buildings in the course of construction Plant, Equipment, Fixtures and Fittings Motor Veliicles 5/0 I/0- 33.3 /0 25% Govemors have considered the impainnenl of those freehold buildings with an estimated useful life of over 50 year5 and are satisfied, having considered both realisable value and value in use, that the buildings have not been materially impaired. INVESTMENTS Investinents 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. FUNt)s The fuiids of the Schi)ol are segregated between: (i) Restricted Funds Scholarship, PrTze and Bursary Funds The School receives some of its income primarily for the provision of Scholarships, Bursaries and Prizes. This income is credited directly to the relevant fund account. All expendilure in relation to this income is charged directly to the relevant fund account. School Development Fund Incorporated within the School Development Fiind is "The Capital Challenge" fuiidraising programme. This programme was launch¢d in 2013 to ratse funds to build a new Sports Hall and Sixth Fonn Centre and a New Perfonning Arts Facility. The School is no longer actively promoting fundraising for ihe 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 discl)arged. The restriction placed on the funds received in respect of both The Capital Challenge fundraising programme and in respect of the Junior School redevelopmeni 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. Channing Alumnae 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 and also amongst alumnae. A number of reunion events are a150 lield throughout the year. The Channing Alumnae fund is managed by the Alumnae committee. 18
Channing House Incorporated, Highgate ACCOUNTING POLICIES For tlie year ended 31 August 2024 Channing Association The Channing Association is a reslricted fund of the School for the purpose of fostering support from the wider Channing community includTng current and fonner parents and friends of the School. The Channing Association organises social events for botli parents and pupils and also helps support a number of School events during the year. Tlie Association also undertakes occasional fundrdising for the School. but this is incidental to its core purpose. The Channing Association has its own committee structure, which deterniines both its activities and expenditure for the year. Unrestricted Funds Retained Income 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 interesl 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 lo receive cash or other financial assets from a third party. Financial liabilities comprise creditors fall ing 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 ihe sole purpose of managing the cash flow of the School on a day-to-day basis or arise from nonnal operating activities. PENSION COSTS Retii'einent benefits for teachers who joined the Sch(x)I prior to November 2023 are provided by the Teachers, P¢nsTon Scheme (TPS) unless they have opted out. 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 Sch(K)I has accounted for its contributions to the Scheme as if it were a defined contribution scheme. The School also operates defined contribution schemes for staff not in the TPS. Contributions lo these schemes are charged to the Statement of Financial Aclivities 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 STATEMENT For the year ended 31 Aiigust 2024 CHARITABLE ACTIVITIES- SCHOOL FEES RECEIVABLE Fees receivable are stated net of Scholarships and Bursaries awarded and allowances given. Scholarships, Bursaries and allowances totalled £2,053,374 (2023- £1,742,418). CHARITABLE ACTIVITIES - OTHER INCOME 2024 £'ooo 2023 £'ooo Educational visits and other recoverdble items Registration fees and fees in lieu of notice Other incorne 662.2 491.9 232.4 179.4 11)0.8 108.9 TOTAL EXPENDITURE Staff costs (note 4) £'(x)o Depreciation Other costs 2024 Total £'ooo 2023 Total £'ooo £'ooo £'ooo Raising funds: Bank Loan interest 123.6 123.6 153.4 Total Cost of Raising Funds 123.6 123.6 153.4 Charilable aelivities: School operating costs: Teaching Welfare and Catering Premises and occupancy Properly repair and mainlenance Administration and support Govemance Grants, awards and prizes 11.650.4 766.0 337.5 2,401.3 535.7 2,143.8 1,075.8 964.3 14,051.7 IJOl.7 3a76.7 1,075.8 2,218.2 87.7 12.2 12,363.9 1,283.2 2,693.9 895.4 .253.9 48.8 1.978.7 81.6 10.3 38.9 12.2 Total Charitable expendilure 14.056.6 895.4 7,172.2 22,124.0 19,532.7 TOTAL EXPENDITURE 14.056.6 895.4 7,295.6 22,247.6 19,686.1 2023.. 12.447.6 994.5 6,244.0 20
Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For tlie year elided 31 August 2024 3 TOTAL EXPENDITURE (Continued) 2024 £'ooo 2023 £'ooo Charitable expenditure includes: Operating lease renlals Auditor's remuneration.. For audit services- RSM UK Audit LLP (exclusive of VAT) 106.7 87.0 29.7 28.3 For payroll services - RSM Employer Services Limited For risk assurance service- RSM UK Risk Assurance Servtces LLP For VAT advice- RSM UK Tax and Advisory Services LLP 4 STAFF COSTS The aggregate staff costs (note 3} were as follows: Wages and salaries Social security costs Pension contributions 10,985.4 1,139.8 ,931.4 9.777.9 1,022.1 1,647.6 14.056.6 12.447.6 Included in wages and salaries are termination payments totalling £62.400 (2023: £NIL). The average monthly number of employees during the year was made up as follows: 2024 2023 Full Time PArt Time Full Time Part Time Teaching Technical and support Catering Maintenance and caretaking Administrative 39 88 38 16 15 15 13 129 57 57* * Equivalent to approximately 30 {2023.'29) number of full time employees. In addition to ihe above, the School also made payments to peripatetic music leachers 29 (2023.'31). 21
Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2024 STAFF COSTS (continued) The number of employees whose emoluments (excludes employer's pension contribulion) exceeded £60.000 was: 2024 34 13 2023 30 £60.001- £70,000 £70,001- £80,000 £80,001- £90,000 £90,001- £ 100,000 £ioo,001-£i10,000 £110,001- £120,000 £170,001- £180,000 £180,001- £190.000 £190,001- £200,000 £210,001- £220.000 Contributions of £877.528 (2023: £633.566) were made to the Teachers. Pension Scheme. which is a defined benefits scheme, for 47 (2023: 38) higher paid employees. Conlributions of £61,856 (2023- £36,747) were also made to defined contribution schemes for l 0 (2023= 5) higher paid employees. Aggregate employee-benefits of key management personnel (including employer nsiOn and national insurance contributions) LS11,900 £459.105 TANGIBLF rixt*.D ASSETS Freehold land and buildings Buildings in Planl. the course of Equipmeni, conslruction Fixlur¢s and Fitlings Motor Vehicles Total £'o¢x) £'ooo £'ooo I September 2023 34.154.4 2.576.0 120.6 36,851.0 Additionq 476.0 476.0 31 August 2024 34 154.4 476.0 120.6 37 327.0 I SLplember 2023 4,652.1 2,355.9 77.7 7,085.7 CharRcd in the year 731.3 149.3 14.8 895.4 31 August 2024 Nel book value.. 31 August 2024 I Seplcmber 2023 29 502.3 220.1 42.9 29 765.3 22
Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For the y¢ar ended 31 August 2024 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 (2023.. £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 Schwl's land, comprising just under 3 hectares in North London, is very significantly in excess of its original cost. INVESTMF.N'rs 2024 £'ooo 2023 £'ooo Market value at I Scptcmber Additions 484.6 487.6 22.2 Revaluation {3.8) Market value at 31 August 531.0 484.6 Historical cost of Investments 267.9 246.9 Investments comprise the following.. Lislcd on Stock Exchange Cash dep051ts 292. 267.9 238.9 216.7 531.0 484.6 I'he School had investment holdings of greater than 50/0 of overall mark¢1 valu¢ in Ihc lolloiving.. Charitie5 OITicial Investment Fund 222.6 206.0 J.P. Morgan UK Strategic Equily Income Fund M&G F.quilies Investment Fund for Charities 37.3 31.4 25.8 23.3 DEBTORS Fees receivable Other debtors 24.8 14.9 Prepayments and accrued income 985.7 604.5 1,015.2 628.7 23
Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2024 CREDITORS.. Amounts falling due within one year 2024 £'ooo 2023 £'ooo Advanced Fees received l year in advance (see Note 9(a)) Other Fees received in advance Bank Loans repayable wiihin l year (see Note 9 (¢)) Other taxes and National Insurdnce contributions Trade Crediiors Other Creditors Trips Accruals 6J56.9 1,611.7 381.6 4.877.7 1,178.4 487.9 285.0 261.4 621.2 573.2 223.0 195.3 170.8 116.8 705.5 730.1 IOJ55.7 8,420.8 CREDITORS.. Amounts falling due after more than one year Advanced fees (see Note 9(a)) Final temi deposits (see Note 9(b)) Bank loans (see Note 9(c)) 7259.8 2,931.4 2,481.2 2,000.9 2,742.6 2.863. 12,672.4 7.606.6 9 (a) Advanced f¢es Parents for many years have been offered the opportunity to pay for future years, tuition fees in advance. Some parents have taken advantage of this offer and have entered into an arrangement with the School lo pay their tuition fees in advance. Assuming pupils will remain at the School the amounts paid in respect of future years, tuition fe¢s will be applied to the future years, tuition fees as follows: Fees due in 1- 2 years Fees due in 2- 5 years 4,427J 2032.5 .922.2 78.7 7259.8 2,000.9 Fees due within l year (see Note 8) 6J56.9 4.877.7 13,616.7 6.878.6 The movements during the year were as follows: . Balance at I September Amounts received during the year Amounts utilised during the year 6078.6 8,292.2 11,683.5 3.378.9 (4,945.4) (4.792.51 Balance at 31 August 13 616.7 78.6 24
Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENT For the year ended 31 Aiigiist 2024 9(b) Final Term Deposits All new pupils are required to pay a deposit which is then applied against the pupil's final terni'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 iheir final term as follows: 2024 £'ooo 533.0 2023 £'ooo 484.8 Deposits due to be refunded in 1- 2 YrS Deposits due to be refunded in 2- 5 years Deposits due to be refunded in more than 5 years 760.7 682.0 1.637.7 ,575.8 2,931.4 2,742.6 9{c) Bank LOAIIS Baiik Loans are repayable as follows as follows: Repayments within ]- 2 years Repayments within 2- 5 years Repayments in more than 5 years 397.2 381.6 1.292.0 792.0 1.241.1 1.240.4 2,481.2 381.6 2,863.1 487.9 Repaymenls Within l year (see Note 8) 2,862.8 3,351.0 As at the 31 August 2024 ihe School has drawn down bank loan facilities totalling £7.5m to part fund the construction of the new Sports Hall and Sixth Fomi Centre, and the Perfomiing Arts Building. These facilities are secured on the School's freehold land and buildings. Of the £7.5m loan facilities drawn down: £1 m was converted to a fixed terni loan repayable over 10 years commencing on 29 August 2014 at an interest rate fixed at 4.47°/o p.a. for the duration of the loan. This loan was fully repaid on 30 August 2024. £2m was converted to a fixed tem loan repayable over 15 y¢ars commencing on l December 2015 at an interest rale fixed at 4.730/0 p-a. for the duration of the loan. £ l. I m was converted to a fixed ierm loan repayable over 15 years commencing on 29 August 2015 at a variable interest rale of 2./0 p.a. above the Base Rate. This loan was subsequently, on 16 October 2016, converted to a fixed term loan repayable over14 years at an interest rdte fixed ai 3.4/0 p.a. for the duration of ihe loan. £2.4m was drawn down on 20 December 2017 as a fixed tenn loan repayable over 15 years at an interest rate fixed at 3.64 /0 p.a. for Ihe duration of the loan. £lm was drawn down on 30 June 2020 as a fixed ienn loan repayable over 12 years and 7 months al a variable interest rale of 20/0 over Base Rate for Ihe duration of the loan. This loan was repaid on 12 December 2022. 25
Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 Aiigiist 2024 10 RESTRicfED FUNDS Balance 31 August 2023 £'ooo Incoming Resources resources expended Trdnsfers Loss on revaluation of investments Balance 31 August 2024 £'ooo £'ooo £'ooo £'ooo Scholarship. Prize and Bursary Funds School Development Fund Channing Alumnae Channing Association 421.4 (17.8) 24.2 448.9 (2.0). 29.2 (12.6) (65.0) 25.4 34.0 87.7 56.7 484.6 119.6 {95.4) (2.0) (24.2) 531.0 This transfer relates to donations received for the purpose of developing the Sport5 Hall, Sixth Forni Cenlre, Music and Performing Arts facilities at the Senior School and the Junior School redevelopment. The restriction placed on the income received has been discharged in thal expenditure has been incurred and capilalised within fixed asset5. Consequently, Ihe funds were Iransferred to unrestricted funds. A description of each restricted fund and its use can be found on page 6. FUNDS- ALLOCATION OF NET ASSETS Tangiblc fixed assets Investments Nct current Assels Creditors ralling due aftcr more than l ycar 2024 Total £,0 £'o £'O(H) Restricted funds 531.0 531.0 Unrestricted funds 29,345.9 16,638.4 (12.672.4) 33011.9 29J45.9 531.0 16.638.4 (12,672.4) 33,842.9 2023 Total 484.6 Restricted funds 484.6 Unrestricted funds 29.765.3 7.146.4 {7.606.6) 29.305.] 29,765.3 484.6 7.146.4 {7.606.6) 29,789.7 *lncluded in Restricted Funds are curnulative unrealised gains of £261.823 (2023: £237.626). 26
Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For the year elided 31 August 2024 12 SHARE CAPITAL. The company is limited by guarantee and has no share capital. members having a liability not ex¢¢eding £5 each. 13 PENSION COMMITMENTS a. Teachers Teachers who joined the School prior to November 2023 have the option to either join the School's defined contribution pension scheme or remain as members of the Teacliers, Pension Scheme England and Wales (TPS). The TPS scheme was closed to teachers joining the School after l November 2023. The TPS scheme is a multi-employer. statutory, contributory, defined benefit scheme, governed by the Teachers, Pensions Scheme Regulalions 2014. Membership is autoniatic for full-time teachers and. from l January 2007, automalic for teachers in part-time employment following appointment or a change of coniract. 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 Ihose 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 Ihe underlying assets and liabilities of the scheme. Accordingly, the School has laken advanlage of Ihe exemption in FRS 102 and has accounted for its contributions to the scheme as if il were a defined-contribution plan. The School has set out within this note the scheme inforniation available and the implications for the School in temis of tlie anticipated contribution rates. Not le55 Ihan every four years the Governmeiit Actuary, using normal actuarial principles, conducts a forn)al actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2023 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial sclieme valuations are dependent on assumptions about the value of tre Costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. 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 estiinated cost of future benefits) for service to the effective dale of £262 billion, and notional assets {estiiiiated future contributions together with ihe notional investments held al Ihe valuation date) of £222 billion giving a notional scheme deficit of £40 billion. As a result of the valuation, new employer contribution rates were sel at 28.68% of pensionable pay (including a 0.08% employer adniinistration charge) from April 2024 onwards. This compares to 23.680/0 previously. During the year the employee contribution rate rdnged between 7.40/0 and 11.70/0 depending on a member's salary. A copy of the valuatton report and supporting documentation is on the Teachers, Pensioiis web ile. The pension charge includes employer contributions payable to the scheme, which amounted to £1,540,110 (2023: £1,368,907). As at 31 August 2024 there were outstanding contributions 27
Channing House Incorporated, Highgate NOTES TO THE FINANCIAL STATEMENTS For tlie year ¢nded 31 Augiist 2024 payable to the scheme of £171,fv14 (2023: £165,280) Tncluded in other creditors. The contributions of the School represent a minor proportion of the payinents into the scheme. b) Staff not in the Teachers. Pension Scheme. The School operates defined contribution schemes for staff not in the Teachers, Pension Scheme. The assets of these schemes are held separately from those of the School in funds adm inistered by insurance companies. The pension cost charge represents Contributions payable in respect of these schemes and amount to £391,282 (2023: £278,660). £50,540 (2023- £25,183) included in other creditors was payable lo these schemes at the year end. 14 COMMITMENTS As at 31 August the School had the following capital commitments: 2024 £'ooo 2023 £'ooo Contracted for Authorised for 282.0 15 OPERATING LEASE ARRANGEMENTS As at 31 August the School had minimum lease paymenls under non<ancellable operating leases, in aggregate, as follows: _ Buildings Equipment £'o 2024 £'ooo 2023 £'ooo Amounts payable:. Within one year Within 2-5 years 134.2 27.3 161.5 30.1 224.5 75.1 299.6 102.4 358.7 102.4 461.1 132.5 2023.. 12 16 RELATED PARTY TRANSACTIONS There were no transactions with related parties during the year to 31 August 2024 or during the year to 31 August 2023 and there were no balances outstanding at the previous or current year-end. No member of the Association or Board of Governors received any remunerdtion or other benefits from Ihe School. Five {2023= five) Governors were reimbursed trdvelling and incidental expenses totalling £1,520 (2023: £1.352). The insurdnce premium paid by the School includes an element of indemnity cover for 'directors' (Governors). 28