2020-08-31-accounts

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES 11 REPORT AND FINANCIAL STATEMENTS For the year ended 31 August 2020

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For the year eFKled 31 August 2020 Contents Pgg Annual Report ol the Feoffees Indgpendent Auditors, Report 16 Statement ol Financial ActIvit￿S 19 Balanc8 Sheet 20 Cash Flow Stat8merTrl 21 Notes to the Cash Flow Stalornent Notes to the Financi& Stalgmgllts

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HLIMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For thè yoar andod 31 August 2020 The Fgoffees and School Govarning Body pres8nt their annu81 rarK)ri lor the year ended 31 August 2020 under the Charibes Act 2011, tog8lher with the audrfted linaneial statements lor the year and confirm that the latter comFAy with the requirements ol the Act, th8 Charity Commission Scheme dated 27 May 1952 and amended Scheme dated 22 Oclobgr 1969 and the Clillfities SORP 2015. Reference and admlnlstrative det3lls The Feoffees who serv￿ during the year and up to the date ol &gning the accounts werè as follows.. P.A. Lee, Esq. M. Edge, Esq. H. Ross, Esq. A. Torevell, Esq. Professor H. Bark8r Datne A. Burslem The Rt. Hon. Th8 Earl of Oerby Mts V. Goldstone The Very Reverend R. Gov8nd8r Dr. D. Hill J. Langridge, Esq. Prol. L. Merrid( T. Newns, Esq. M. Oglpsby, Esq. Mrs. V. Torevell Mrs. S. Marks (Chairmanl (Treasurerl (Vic8 Chaifman trom October 20201 (Vice Chairman- Deceased May 20201 IAprx)inted February 20211 (Appointed February 20211 IAppDint8d F8brtsary 20211 IAppDinled February 20211 ID8C8as8d D&C8m￿r 20191 IAppDlnted February 20211

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For th& yaar onded 31 August 2020 School Goveynlng Bo(ty Under the tgirns of thè Charity Commission Scheme, therg is a School Governing Body managing th8 School of the Foundab"Dn, whieh, when compl8te, comprise5 nineteen mambers. Those who served during thè year and up lo the date ol SiQFEing th8 #ccounls wère as follows: M. Edge, E¥. Ms. S. 8arnes Mrs. C. Baxendale Prof. B. Brennan Councillor J. Davies Mrs. T. Dixon K. Jaquiss, Esq. S. M¢Kendrick, Esq. Prof. L. Merrick Mrs. P. Newman L. Pratt, Esq. H. Ftoss, Esq. Ms. K. Russell N. Shepherd, Esq. Canon M. Wall S. Webb, Esq. Dr. S. Zhi Ichair and Treasurer) IAppointg& by the School Governing Body) INomlnated by Manchester cty Coun¢lll INominated by Manthe5ter City Courjcil. Appointed Septgmber 20191 (Appointèd by the School Governing Bodyl (Resigned Octobgr 20191 (Appointed May 20211 IAppaint8d May 20201 (Nominated by th8 D8an And Chapter ol Manchester Cathtrdrdl Llbrary Commltteg Those who seTW8d on tha Library Committee during the year and up to the datè of signiryJ the accounts were as follows-. Professor H. Barker N. Barker, Esq. Professor J. B&rgin Dr. A. Biswell N. Brooks-sykes, Esq. Mrs. V. Goldstone J. Hodgson, Esq. N. Mac1nn9s. Esq. Dr. R. Oates Mrs. C. Paynlon Pfofessor M. Schmldt Ichairl IResign8d Dècgmb6r 20191 IAppointed Decemb8r 20191 (Appointed December 20191 IAppoinled S8ptetnb8r 20191 (Appointed September 20191

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For the ended 31 Augts$t 2020 Officer$ The Principal The Bursar The Llbrarian The Clerk to the Feoffees A. Jone$, Esq. Mrs. S.C. Newman Dr. J. F. Wilde J. Aldarsley, Esq. Prlnclpal Office Address Chetham's Hospital School and Library lo￿ Millgate Manchester M3 1SB Advisers Bankers National Westminster Bank plc 182 Deansgate Manchester M3 3LY Solicilors Buteher & Barlow LLP 3 Royal Mews Gadbrook Park Northwich Chèshire CW9 7UD Vea18 Wasbrough Vizards LLP Narrow Quciy House Narrow Quay BS14QA Audltors of tha Charltablo Foundatlon Crowè U.K. LLP The Lexicon Mount Street Manch9s19r M25NT Investmènt advlsers Rathbone Brothers PLC Port of Lw6rpool Building Plsr Head verpool L3 1NW Archltects Worlhington Ashworth Jad¢son Walker C8rrwood House 109 Shaw Heath StockpDrt Cheshire SK2 6Q

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For thè y8ar ended 31 August 2020 Insurance brokgr8 Marsh Commercial Ilormerly Jelf InsurancE Brokers Limited) Kabel Hous 15 Quay Street Manchester M33HN

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES 11 ANNUAL REPORT OF THE FEOFFEES For the year endgd 31 ALbgust 2020 structure, governance and management Govèrnlng document and structure The lull name of this charitable foundation is Yhe Hospital and Library in Manehester founded by Humphrey Chethatn, Esq. and Incorporated by King Charles Il" IRegist8r8d Charity Number 5267021. The Foundation. including the School, Is regulated by a Charty Commission Scheme dated 27 May 1952, and amended by a SthgTTre dated 22 October 1969. Chètharn's Hospital, Chelham's School of Music and Chetham's Library ar0 separatè charitBs but arg rogistèiad under one Charity Numb&r, following a Unthng Direction issu8d by the Charities Comtnission in 2004 tor registration and accounbtVJ Pu￿Dse5. Th8 Trustees of th8 H05Pital and Library charit18s, who are thown as the Feoffe8s. are a Bolly Corpc>rate, pursuant lo Letters Patent ol King Gharles11, dated 10 November 1665. Ghetham's Hall Limit8d is a SUbs￿lary undertaking that Is a wholly own8d subsidiary of Chetharn's Hospital. Chetham's Trading Limllsd is a subsidiary undertaklng thal is a wholly owned subsidiary ol Chethartt's School ol Musi¢. Governing bodlès The Feoffees are the govorning body ol the Hospital and Library challties. The School Governing Body ol Chelham's School of Music is the gov8rning body ol the School. The Library Committee acts as the rnan(Ig&menl (x)rHm1tt69 ol the Library charity aFproval for that Committee's recommendations is given by the Feolfe8s. Recrultmènt end training Chetham's Hospllal Faollees are aptK)int8d under the tsrms ol th8 Will af Humphrey Chetham. The Chairman, Wice Chairman and Treasurgr are elpcted annually. The tgrm ol offi￿ 15 5 years and F80ff8ss may be re-elected. New Feolfegs are chostrn Irorn a wide varièty of acadernic and business baekgrovnds to ensur8 that the essential level ol knowledgé èxparienee is maintain9d and they arè inducted into thg wothng ol the Hospital on appointment. Continuing training lor existing F80ff8ès is arranged on an on-going basis as necessary. Chethan7'5 Sthool ofmuslc The appointrnent of tnembers of the School Gov8rning Body is confi'rmed bythe Feoffeès exceptwhere Othgrwlse stat9d. The term ol oflice is thre8 years. All mernbers may bg r8-818Ctsd, New Governing Body m8mb8rs arè chosen from a wid9 Va[￿tY of academic, musical and bu￿ne$S bad(grounds and are inducted into th9 workings ol the School by th8 Principal. Safer recrUit￿ent proetrdures are followÉd lor all School Governors including DBS ¢hths. Continuing training for existing members is organised on an on- golng basis as necessary. Al each meeting ol the Governing body the opportunty 15 taken to update m8rnbèrs on variou8 aspects of School life and currgnt edueational issues. Training this year included an update fvom the Sto1181 Hal Gèneral Manager on tho Operation ol The Stoll?r H811 during the year and th9 School's Designat8d Safeguarding Lead attended the Septemb$r 2019 meeting to an5W8r qu8Stions on the School's Safeguarding Policy.

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES 11 ANNUAL REPORT OF THE FEOFFEES For tho year ended 31 August 2020 Chgtham's Llbrnry N8w members ol the Dbrary Co[nm￿kee are selected by the Library Committee and th6ir appointments are confirmed by th8 Feoffees. Members for a three year p@riod with the opportunity lor re-election at the end of that time il appropiia19. New members are chosen Irom a wlde variety of academic and business backgrounds and are inducted into tho workings ol the ￿brary by Chetham's Librarian who also arranges lor ongoing trainlng for 8XiSting members as ne￿SSary. Organls8tlon01 management The F80ff86s are legally responsible for thè overall managoment ar￿ control of Gh8tham's Hospital and of ChetlTr(im's Library. Th8 F80ff6es meet formally at leasttwicE a year. Th8 Ex8CUtive Sub-committeo is charged with making recommendations to tha FEolfees on strategic mattprs induding reviewing th8 structure of the Foundatlon and other important tnattèrs. This Sub-CommitteB consists ol FeDff88s and senior managetnonl of the School and Library. The Inve51monl Sub-committee oversees thè Investmanl wrtfolio and worf(s with the Inv¢stsnent Managers. The day lo day running ol Ch8tharn's Hospital is delegatsd to the Bur5af lor financial and buildings matters. The day to day running ol Chetharn's Llbrary is delegated to thg Library Committee and to the Litxarian. Thg Sthtsol Governlng Body is legally rèsponsible for thg ovgrall rttanagemenl and cortrol Df the School. The Govèrning Body rn88ts fDrma11y al least three limes a year. There are three 5ub-eommitteos of the Gov8rning Bojy, the R8souices Committee, the Saf8guardiThJ Committee, and the International Opportunities Commitlee. In addrtlon, a governor is on tho School's Health Saf8ty Committee. The day to day running ol tho School Is delegated to the Principal. The Remuneration Sub-Committ66 sets the remunoration packages tor the Principal, Director ol Music and Bursar. The r9muneratiDn package of th8 Librarian is set by the Feoffogs. Remuneration padfages are informally bgllchmathed against comparabl6 organisations, pay structurès. Princlpal rlsks and uncertalnlle$ Thg Feoffeos and the School GovemlnG Body are rgsponsib18 for the management ol the risks laced by th8 Hospital, School and Library. Detailed co[Es￿aratIOnS ol risk are delegatgd to the Prlncipal, LibraTiafj and 8ursar arKI lo the Resources Cornmitte8 which identrfies and a5sesse5 risks and establish8s ￿ntrol5 throughout the yea¥. The Feoffees deem tho major risk laced by the Hospital to be the risk that fundraising achievements are inSuff￿lent to provKJe the necÉss8ry résources to properly maintain thè buildings and resourc9 Ihe activilies to wh￿h the organisation has corntnitted. Thè DeveloFYM8llt D8Partment is monitorgd on an on-going basis direcuy by the F8offegs and its r6ports are SOTUtinized Closely at their regular rHeetillgs. The School Govpming Body maintains a ¢omprehengve risk reoister. K8y risks include the imp8¢t of a ehange in th8 Musie and Dance Schgme wh￿h is the major 50urc8 of ongoing lee incL¥m8 for the Scttool, repijtational damag8, safeguarding arKI health and salgty risks. All ol these risks arg mthgated by careful planning, thorough chgd(s and rèviews being in place and regular monitoring by s8nior staff arLI Governors. The F80ff8ès dsbm the major risk to the Library is its financial sugtainability. Whilst thg Hosp¢[￿ eharity is in a position to financially support thè Library on an OTEgoing basis. the Library staff, F80ffees and Library Goffltnittep fflgmb8rs ar8 committed to sourcing all8rnative financial resourc8S to provide a sustainablo fyluie for the Library.

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETrIAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2020 The key conlrols used by the Foundation includ8.' formal agendas for th6 Committee meetings., datailèd tarms ol relerance lor Committees,. compr9hgnsivg budgeting management accounting. establish8d organlsational structura aThl lines ol reporhng,. lorrnal wrrtten poli￿88., lear authori8atiDn a￿d a￿)roV#119V8Is- and vetting prO￿dureS as r8quir8d by law for tha pmtection of the vuln&rable. Through the Tisk management WOC8SS8S èstablished lor the Foundation the Feoffees and School Governors aT0 s&11s1igd that the rnajor riskts- have been adequately managed. It is recognis8d that 5yStèms ean only provide reasonabla, but not absolute, assurance that major risks havg bgen ad9quataly managed. Objecls, alms, oblectlv8s and activities Charltablo ob￿ct$ The Feollees are required, und&r lh8 t8rrns of th$ Charty Commi%sion Scheme, to apply the annual inLY)me ol the HospitÈl to the Maintenan￿ and improvement ol the School, Library ar￿ Hospital premis8s. including provisions lor extension and improvemenl of those PT8niis8s and purchase ol additional land and in the payment of grants and ￿loWanCeS and the award, inter ￿la, ol scholarships, maintenancg dlowanc88 arKI i)Ihar flnanci81 assistance. The object of the Sehool is to give a liberal gducation wilh due regard lo th8 thèory arid practica ol music. Tho object of the Library is to provida, under thg Will ol Hurnphr8y Ch8tham, "A Library within the Town of Manthester, forthe use of scholars, and others wo11 affe¢led. lo resort unto". Publlc ben8lFI alms and IntÈndèd Impact The Public Benefit aims of the Hospit81 ar8 to provid& th8 Optimum resources to enable Chetham's Library and Ch$thpJm's School ol Music to excel in their respective fjglds of 9xpertise at%J lo facilitate wide public accèss to the services oftered by both entities. The Feoffees and School Govérnors have had regard to the Charity Commissions guidance on Public Benefit. The Publ1¢ Bonefft wms of the School are as follows= To educate musically grftgd Qhiklren betwee￿ the ages 018 and 18 whatever their social, racial and cultural background and fft'nancial ¢ircumstan¢es', To provide as broad an aeadernic curriculum as is possible within a spg¢ialist school. and To dovelop the whole wrson, furthering the spiritual, moral, social and cultural dgvelopm$nt ol each student.

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES 11 ANNUAL REPORT OF THE FEOFFEES For th8 year èndèd 31 August 2020 The Public Benefit aims of the Llbrary are to maintain th9 provisions of thè Humphrey Chetham Will, and to make improv8tnents to the Library whenever possible. It aim5 to advance the education ol thg public by the provision of opportunities to study historical arKI ¢ontsmpDrary literature. specialising in th8 history ol the North West ol EnglatKJ. Obieclives for th8 yohr All three charities have beBn itnpacted to a greater or less8r 8Xt8nt during the year by th8 Goronaviws pandetnic and so the overarching obj'gctwe has been to ensur6 that the charities and the $8Nc8s pr(>Mdad to beneficiaries are maintained at tho highest possible16vèl. The major obj8ctN8 for tho HosFxtd thi5 year has been to continueto fulfill its statad aims of supporting ihe knbrary and School. Thg main objectivès ot the School were as follows- To manaoÈ thè School effectively during the Coronavirus pandamic, limrting its impact upon tho stujents, education as lar as possibl8. To ensure Ihat Ihe School'5 Saf8ouardino PolScy and practices aro exernplary and I￿￿11% al regulatory and statLrtory requirements. To ¢onlinu8 to achlsvè consistently high results in musical aruj aoadetnic fields. Working with the Feoflees, to lurther the Site Development Proj9Ct which has provided the New School Building and the new SloSler Hall, a 482 seat Con￿rI hall. To ¢ontinu8 to provide Opportun￿&S to th8 publ￿ via the School's extensive outreach programm$. widening acoess to lh9 Schod. To increase the amount ol bursary fundinu lor overseas and home stud9nls lo 8nab18 rnor8 Stud6nts to be SUPPDrtèd financially. £353,47912019-. £188,786> was providèd in bursary support this ygar. The major objeclive for the Lifvry this year has been to continue to fulfill its statèd aims of the provisiDn ol a Library. Fundraising has been prioritised to help to ensuro tho Library's activities ara 5UStainabl8. Strategles to achleve the year's objeetlves The stratggies used to achieveth6 Hospital's objectW8 thls year inelude.. continuing to raisethe n8cessary fundin to cover the funding gaps inwrrgd during the on-going Site Development Proj8Ct. The School's strategies in¢lud8d-. The School's Safeguarding Comtni119e rnontiors saf8guarding rnatters at each of its rneglings. The Safeguarding Policy is updat￿1 and reviewed at least annually by the School and Governors. Continuing to employ and invest in the best possible staff in all departm8nts in th& Sehod. Providing opportunities for Ch81harn's sknJd8nts and the public to parbcipatg in high quality ovents including rn&sterclass&s. recitals, orchestral wncgrts and nurnerous speclalist teacher and student days throughout ihg year. Gonlinuing work on the reluvbishrnenl of th8 tx)ys' boarding accommodation in the Millga19 Buildiry. Thè first phase of the construction work was cOmp￿led in Summ8r 2019 and thè students moved into the new b9drootTrs in SBpt8mber 2019. This phasg of the Site Dovolopment Project Is expected to continu8 for a number of years. Identif￿ng a￿1 working with pot8ntial providers ol bursary funding.

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For thg èndèd 31 August 2020 The strategies used bythe Library to achieve this year's objectives included reviBwing the securing of tho lir>ancial ability ol the Library by the submissbn ol num910us fundillg applications to a variety of trusts and foundatioTrs, continuTng and expanding on the strong links with other academ￿ institulions and Manchester Cathedral and targeted gxpansion ol the holding ol ielevanl books and othèr materials. The Coronavirus Pandern￿ impacted significan￿Y on the Library as it had to closé to public visitors in March 2020. 11 plan5 to rè-open in Sumrner 2021, and in the meantiffle 45 Offering an on-llne service. Prlnclpal activilie$ ot the ygar Thè principal aclivitl8s of thg Hospllal were the provision of pr8rnis8S to house the School and Li￿arY ar ass￿la10d actNities, together with the awarding of gr8nts to the Lilxary and to students of the School. The principal actmty Df Ihe School was the provision of a musical and academic wJu¢alian lo young people between thè ag&s 018 arKJ 18. Th8 School also PlDvides an pxtgnsive outrea¢h programme to encourage wtder COTnmunity acooss to the excellent teaching resourc8s of thè School. Thg prillcipal a(ivily ol the tibrary was the provigon of a library and assoc4aled aotivrties. Foundation bulldlngs Under the Will of Humphrey Chetham who died in 1653, Co118g8 House was purchased lor the foundation of a hospital Ischooll aNI a library. The accounts of the Foundation do not incorry)ralg any valu8 of Collège House. The valu9 Of land and buildings shown in the financial staloments Is the purchase pricg of th8 Millgatè B￿lIding, and the construction costs ol New CollegB House, the Millgate extension, th8 New School Building. the conversion cosls lor the Nicholls Bullding re-development, the construction QQSts ot thp Stoller Hall arKI of th8 r8d6v8bpment ol th6 boys, boarding accommodation in the Millgate Building, all net of depr8Cl8tion wh6r6 relevant, together with the purchaso price oftha parcel of land atwalkers Croft. The buildings ale insured lor£107 million on a r8building basis. Th8 Hospital is responsible for the 8Xternal repar and maint6nance of the Foundation buildings. and the costs are charged lo ils annual at(￿unt$ as incurred. The SchLKJI and Library pay IDr internal rgpairs and rnaint8nance within thèir own respectiv8 accounts. Grant maklng pollcy The Feoffeps make awards on the basis of an indivldual's financial p)sltion. Any parb'cular CDnditions imposed by dorFofs are taken into account when making awards. Whilst most of the award5 from the Hospild are small and giv8n ag bursaries, any grant from the Inslrurngnt Fund is givgn ID parents in suppoit of their requests for assistan¢ in buying instruments lor their Childien. Thé parents usually have to contribut8 to any purchase. This year. the value of awards madé by the Hospital to the School's students was £1,60012019- £2,400). A grant of £22,00012019- £94,0001 was made to Ghethatn's Ubrary during the year. Around 90Vo of the students at Chelham's are eligible for means-tested support throuuh the Music and Dance Aided Pupil S¢horne. funded by Ihe Department for Education IDIEI. This Scheme ensures that farnilies ara only askèd to contritxjte towards the lees Qt thg School at a level that they can aftord. For a number ol reasons, usually because the Scheme is primarily lor UK residents, a SFnall numbèr ol students are not 91igible for financl support through the DIE sohem8. A signrficant part of the School's aclivitvas is the provision ol bursaries to Ihes8 students, to facilitat9 the VVKlenlng ol access to the School. Bursaries are awarded from both unrgstricted and r8Strieted funds and awards are based on thg &hDoI'5 as5e5sment ol financial n88d. Detailed means testing is CArried out by the School lo ensure that its funds are diiecled towards thosg who would otherwise not be able to afford to come to Chetham's. This year the School contributed £111,80712019- £nill from Ufif85tricted FL5nds and £241,67212019- £188,788) frDm Restricted Funds to SUPFK)rt stud$nts linaneially. The amount Ix)ntribut8d ach y8ar varies according to spec4lic need in each particular year.

TrIE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For th& y8ar andod 31 August 2020 Revlew of achlevements and performance for the year Revlew ot a¢tivities Chotham's Hospital The M￿01 activity ol the Hospital during thig y62r has been to fu￿1raISe lo coveF the ftJndirKJ gaps iwurr8d durin9 the on-goi￿g Silo 06v6lopment Project. This Projod was ￿l￿ded into three phases.. to construct tha New School Building, including constructing a 482 seat eoncert hal, to refurt)ish the rosidenlial accommodaticln in the Millgat8 and Nicholls Buildings and to increase public acces5 to the tnedieval estate by th8 opening of the Medieval Manchester Visitor Attraction. Fundraising for the Project has slowed somewhat a￿Ough Dvtrr £43 million has been Tai$8d. Plans have be8fi made lor the separation of the School si16 from the Visitor Attraction aT8as, and lor 9ignilicantly upgrading the Waterhouse Building, which in due course will become a major part ol the visilor experience. The Feoltees hawe woiked closely with a variety ol partners and neighbgurs with the aim ol enhancing th8 èxeiting end unlque experience lor lourisls and othgr visitors. This p￿t ol the Site Developmgrrt Project Is subject to th8 securing ol the necossary funding. Safeguarding matters were also atthe forelronl of activitÈgS, 5UPPOrting the School in ensuring that Systetns werB effeotive. Thg Feoffees conS￿er that the actiw1185 of th8 School and Library and of ItS91f further the Hospital's charilablo purposes for the public bènefit as the Hospital contributss ID gnhancing those actwities. Chefhan7's *hg01 glmuslc At the start ol the year there were 323 students on roll. Compared to 305 the previ(yJs y9ar. This nutnbef Includes 15 Choristers, as the School acts a5 th8 Choir School lor Manchestgf Cathadral. There were 180 girfs and 143 k￿Y5, with 143 slud8tts in the 6th Form. 145 in Years 7 to 11 alld 35 Juniors. Most167Y.I students aro board8r£, th th8 rem&ind6r living within commubng distance ol the School. Th8 School admits students soldy on the basis ot musical ability and applicants arè rigorously auditioned for selection. For entry in SeptetnbBr 2019 Ihare were 161 aPpI￿atiOnS and 149 auditions with 85 children suwessfullyjoining the School. In addition the School caiiie5 Out many free adwce audibons whèra children who may be considering applying to the School are given professional feedback on their playing and musical ability. Atotal of 263 places at the School are funded eath year by the D@parttn8nt for Education under the Govemrn¢nt- funded Music and Dane& Schools IMDSI Aided Pupils Scherne. This Scheme allows lor rn8ans testing with lee r8mission for eligible lamiligs. The School also provides substanbal buisary funding for exceptionally ta19nled studentswho ar8 noteligiblè lorthe MDS Scheme, and for olhef familles who May be suffering financial hardship. Th8 av8rage awardthis yearwas £10,09912019-£10.9291, providing supp)rtto atotal 013512019-171 students. The numb9r ol studonls who arè h61ped financially varies each year according tD need. Ghorist8r placès at Chètham's are also significantly 5UPFX)rted by the School as the fees for Chorist8ts aro discounted by over 60.1.. The School aims lo help as many students as it can ir> this way as it bEIiEves thal the musicl education that it provid8s bèn8fils the public as well as the individuals concemed. Education is a public beneflt in its own right. As w911 as prDviding an exemplary level ol music edu¢ation, the aeademlc results ol th9 School continue to be very satisfactory. De5Plte CorDnavirus pandemic closing the School for most S￿d￿nts for a considerable period, A level results wère excellent with a 1000A pass rate and 82V. of the candidates receiving A. lo B giad8s. Rèsults at GCSE level wers also plgasng with 97Yo at A to C grad8S. Education at the18vel ￿0VIded by the School in Music and Dther subjects to such a high sta￿dar￿ provides not only world class musicians ol the futur8 but rounded individuals who have th9 choice ol where thgir luturg INes may lead. Destinations of th8 Uppèr 6th Form leavers continue to be varied. 47177%) of the leavers were acc8Pted to read Music at universrty. music collegg or ¢ons8rvatoir8, and the most Popular destinations w81P the Royal College of bAusic and the Royal Northem Collsge ol Music. Oth8r Inon-musiol desliTratloll5 induded Cambridge and Edinburgh Univorgties lor subjeots such as hAedi￿n8 and Chinasè.

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OFTHE FEOFFEES For Ihg year énd•d 31 August 2020 This year the Outreaeh Departrnerit doliv9r6d 17 projects, in¢lLKling 30 séparate wort(shops, Cor￿ert5 Dr aebwty S8ssions. We worked with ovgr 30 schools {some several tim8sI. 11 community groups 8rts organisations, 11 music services atKI 3 MUS￿ Education Hubs. Our programme impactsd over 6.700 people lincluding workshops pa￿￿pants, audionce, and viewings of digit81 r6sourcesl. Projects and activibes pre-COVID lockdowri included schools and family Con￿rtS, an assoclate students, programtne, a community arts festival, suppurt for regional ans6mbles, Flule day, a Double Bass tsvent and many oth8r activities. Ong partleular highlight was taking thg entire Chetham's Syrnphony Orehestr2 to ESSA knademy In 8okon and tAaying lor all thgir students. the students from King's Leadership Academy atKJ ESSA Primary School, ovei 800 peop18 Ir total. The students enjoyed music from the orchestra undèr the baton ol Franz-Anton Krager and 6sented by Tom R9dFnond. Some ol the instrurngllt81ists from the Academies also took part in a workshop aloryJsid8 Ch8tham's students, led again by TDM Redmond. Another very p18asing d8vek)pment was lh8 Involvernpnt ol the Chetratn's students In the ensorllNe for our schools and family concorb. They played alongside thg prole55ional musiciaris and assist8d with presenting the concerts in thè Stoller Hall with a vigw to the delivering a ¢onc8rt in 8 I(￿[ primary school themselves. Unfortunately, the perfortnanoe in the School could not go ahead due to lockdown, but the experience was )nelheless very positlV8 lor audien￿ and studgnls alikp. Additionally, the audi8n( lor the fan7ily concert was significanly more than lor family concerts the previous year. When tha pandemic crisis hit wo look afresh view of our activffjfjs and resources fwus8d on ereating MUs￿al resDurces which coukl b8 easily used at hom8 or with groups Df keyworkers, childrèn in schools. We were vgry aware that all live MUS￿ teaching and performing came to a standstill, so wanted lo play our part in ensuring that music-making could still go ahaad, albeit in a diff8renl way. We used our websit8 to housa and promote simpl singing activitiès, our students made d9rnos introducing their instrurngnts, which we backed up witr tha résources and further links, Take 10- a guidèd listening resource and tongue Iwisters. We produc8d 'SDunds and Scengs ol Hop&, f8aturiftg improvised music from Chetham'5 Students and art works by students in local prirnary schools. We alsD used our websit8 lo curate a page ol MUS￿ learning resources from many oth8r organisations to provid9 a'one slop shop, for good quality music Igarning act￿1￿65 during the pand8mi¢. The Sitè D8velopment was impacted by Ihg Coronavirus pandemic and work on the refurbishment was slowèd (X)nsidErably. The first phas& was CDMpIet￿ in Summer 2019, arkd phase two should be completed in 2021. In June 2017 the School was notified that it would be called to give evidence at the Ind8p8ndani Inquiry In Child Sexual Abuse- th8 School's solicitors are prowdillg asslstance in this matter. Represenlatives of the School attendod the lTr4uiry in Septernb8r 2019. The Inquiry's report IS gxpeoted in ALltumn 2021. During th9 year the School invesl8d £4 million ol its cash holdings into its long term investm8nt porffolio. At the yaar end Investrllents tot8llèd £8.306.29512019- £4,187.6701 and cash at bank arKI in hand totalled £4,934,341 12019- £10,440.2411. In addition, cr8ditors aro lower at the year end than they were at 2019 as th8 Music and Danca Scheme delayed making their normal grarit payment in advance from August to early September. h8th8m's Llbrary Chetham's Library is widgly recognised as the oldest survivillg public library in the gngllsh speaking world, rernaining in continuous USE from ils loundatsDlI in 1655 to the present day. It form5 a resour￿ that has faw parallels, beino a major research library. heritage cofflplex and arts organisation. Its significance has been recognized by Arts Council England through Designation ol its collect￿n as boing of national and international importan1￿. The ￿braryWaS grateful to T￿1ve a grantlrom DCMSIWollson lo provid8 bllnds in the Library and an Arts Council grant to help suppoit the knbrary's acti14tiès during th8 Coronavirus Pandemic. Fundralsing lor the L4brary's work continues. The Patrons of Ch8tham's Library schemg raised £1.456 Ihis year 12019.. £2,574). 11

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For thè yèar and8d 31 Augusl 2020 Fundralslng perlormanca agalnst oblectlves During the year £1,676,95212019'. £546.1501 was donated or bequeath8d to th6 Foundation. The Feofffes ar School GovorniTrg Body have set general targets for thè Developmenl Deparlmenl, bDth for unrestrioted and r8strleted income and consldor that the year's resuts arg morg than satisfactory. Ghetham's Is registered with the Fundraisino Reg￿latOr and is COTVtnitted to dèliv8ring the Fundraising Promis8, as outlined on the Fundiaising Regulator's websile, and the high standards sel lor fundrai￿ng, as outllned in the Regulator's Gode ol Fundraising. Irhvg8trnènl pertormance against oble¢tlve$ The investtnent PDW6rs ol the Foundatioll ara subio¢t to statutory provisions, in partieular the Trustees 1nvègtm6nls Act 2000. The policy is to maintain income whi15t prgseDAno the real value of gndowed investments a￿1 lo tnaxitnÈs8 income on I¢￿￿rarilY invested fU￿s. Rathbone Brothgrs PLC actlng as Investment Managers Wtth 8fta¢t from September 2019 have dlgerètionary POW8rs to manage the portFolio and Ihgir pgrfortnance is monitored on a regular basis against agreed benGhmaths by the ItW8Stment Su&Committee. Th8 F90ffg95 and SL'hool Governing Body e(>nsider that the year's r8s￿￿ are satisfactory. The Foundation's annualized totral retum on invgsknert assets was £319,17712019.' £130.6761. Investrnant incoma in the Hospital decrea88d durina the year to £15,88612019- £19,428) ar￿ realised lossgs ware £34,06212019- gains of £50,251). Invesbment income in the School increased during the year to £82.95312019 £54.S771 and realisèd illv8Stmènt losses wer8 £23,38312019- gains of £37,345). Investrnent incorna In thè Library decreased during th8 yoar 10 £83.47712019 - £98,900) and rgalisad Inv6Stment losses were £208,13412019- g&ng of £173,902). Flnon¢lo1 Revlew Thg Foundallon recorded an overall surplus on uTrrèstrieted funds 01 £1,522,02312019- £153.8231 and its total Unrestricted Funds now stand at £8,578,60112019- £7,056,5781. The Hospital recorded a surplus on unrestricted funds lor th8 yfjar of £107,73312019- deficit of £40,483) and its total Unrèstricted Funds now stand at £2,132,50512019- £2,024,772). This includes a deficit of £378,907 12019- £428,907) in Dgsignaled Funds. The School recorded a surplus unrestricted funds lor th8 year of £1.631,58012019- deficit of £24,121) and its total Uhrestri¢1gd Funds now stand at £6,128,38312019- £4,494,808). This include6 £2,048,32712019- £1,017,290) which is designated for a varlety ol specific purposes. The Library recDrded a deficit on unrestrict8d funds for the year of £217,29012019- surplus of £218,3771 which includes invesbrent losgÉs of £207.94412019- gain5 of £171,140) and its total Unrestrict8d Funds 51 at U19,71312019- £537,0031- This includ8s a d8fitst o12nil12019- £2781 in Dgsignated Funds. 12

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For the year gnded 31 Augusl 2020 Golng ¢onc8rn Thè trustees and the Senior Leadership Team continue to closoly monitor the progress of the Covid-19 global pandemic and its impact on Chatham's. The School was closed to tnost students in JaTruary 2021 following the announL￿Ment ol the third national lockdown. Library rernains closgd lo all wsilors. A ggnilication proportion of the School's workforce worked from home during the Swing 2021 tem, providing on-lin8 music and academic 8dueation and pastoral support for students. Th6 DIE has confirmed Lis support for the School and th8 Musitt and DancB Scheme funding is unaff8Ct8d and continues to b9 pad. Parent5 DI boarding S￿dents will be given fee reductlDns for th6 Spring term 2021, lh9 roductlon5 being based on savillgs that the School has been able to make. Tlie income lor the curr8llt yèar lor the Library and the Stoller Hall has been bolst8r8d by the receipt of Arts Council England grants. Neither the F80ffees Tror the School Governors considor there Is any going concarn issue for Chetham's. Reserves pollcy Introducvon Notes 16 to 19 of the financial statements set out an analysis ol the assets aknbulable to the various Funds together with a description ol the major comwnents of those Funds. These assets are suffi¢i?nt to meet the financial oiAigalion5 on a fund by fund basis. The H05Pltal"whi¢h owns the buildings" is pritnarily dependent on rent from the School lor its income. The Feoffees aim to increase th8 balant ol Ifee reserves gach yoar, lo bring the level up to an amount ef( to be appropliate in the circutnstances. At the present Iirng, th8 F8offeès' target for free r8servgs for the Hospital is £300,000. equivalentto around a ygar's expendrture. It is the pollcy of the School Gov8rning B(Kly lo increase free rgsgrvos each year by 1 Oyo when there 15 no ¢all on the reserves to cover unexpected costs. Th8 Governing Bodls aim is to bring the level of resetves to a substantially hsgher level than at present to safeguard against income deterioration or urE&xpwted costs. Th9 Feoffee5 and Library Cornmittge alm to ensura that the free rgseTves of tha Library cover approximately one yeals expenditure. Review of pollG14% These policies will be reviewed every three years by the Tr8asur8r and Bursar and brought lo thg att8ntion ol thg Fooffeos and th8 Sthool and Library Corntnittges as part ol the review of JI policies. Level ofReseThes Unrestricted rgserv8s of the Foundation h8ld at 31 Augus12020 were £8,578,601 12019- £7.056.5781 ol which £1.669,42012019- £588,105) is designated for specrfic purposgs. Th8 unr8Striet8d rbserves are substantially inVESted in the tangible fixed assets of the Foundation. In th9 year to 31 August 2020 th8 surplus on free reserves incrgasgd lo £5,756.701 12019- £4,236.7491. Restrlcled reserves ol the Foundation were £35,587,45512019: £36,039,077). 01 this balan￿ £32,167.977 12019.. £33,071,818) is represented by fixed assets. Hosptilal Free reserves of tha Hospita are £279.90212019- £69,525). Reslrict&Y reserv8s are £29,861,94012019-. £30,492,400). 312019.. 31 capital project funds are in defi￿t at the year 8TKI by £2,517.04412019.' £2,770,197) as exp8ndltufe has been incurred in advance ol ineomo being received lor the wojeits. 18

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For tho yoar ended 31 August 2020 School Fr88 rgseN6S ol the School are £5,272,08612019- £3,745,221). At presertrt, thg lev81 ol reserves is equivalent to around twenty-8ight W8eks' &xpenditure. The Governors, airn to increase the ￿Ve1 of free reserves to 9 months, 8XP8nditure, which at the current time would be £7.3 million. Restricted resgrves arfy £5,702.93212019'. £5,518,781) and are held for a variety ol purposes. Llbrary Free reserves of th8 Library are £204,71312019- £422,003). This is lust under one yearfs operatino ¢081s and is doomEd to be sulftcienl at present. Restricted reserves are £22,58312019-. £27.8961 and are held for a varlety of purposes. Plans for future perlods The Feoffees and scho￿ Governing 8cKJy aim to support continuation and progression of the exoellgnl work parried out by the staff of the School and Library. In Seplgrnber 2020, lollowng the resignation of Ihg Principal, Alun Jones, the school appointed Nieola Smith, former VI￿ Princ(pal and Tom Rgdmond, former Director ol Musi¢, to th8 posifjons of Joint Prinopals ol th8 School. The Sitg Dgvelopment Plan will eontinue as funding allows. The most preSsI￿j aiffl ol the F8off8es and SchDoI Govèrning Body is to Gon￿'nu8 lo upgrade the boardlng accommodation in th8 Millgate Building. This work started in the sutntnei of 2018 and will continue lor a nurnbèr ol yèars. The Feoffees also p￿n to launch thè Medieval Manchester Visitor Attraction, featuring Ghetham's Library and the medieval buikllngs as soon as funding is available. The financial sgcurity ol the Library has to be secured anof this wlll be a major part ol the Feoffges, work in thè gar fU￿re. Dlsclosure of informatlon to the auditors So far as each person who was a F8oNeé atth6 date ol approvlng this report 15 aware, the￿ is no relevant audit inlormatiorn, being information needed by thg auditors in connection with preparing their rf port, of which the auditors are unaware. Having rnadè ènquiries ol fellow Feoffees and thfj chaiit(5 auditors each Feottee has takan all th& st￿S that he or she is obliged to take as a Feoffeè in order to make himself or hers&lf aware of any rolgvant audtt inlonnation and to establish thatth6 auditors are aware ol that illfoitnation. Statement of Feoffees, responslbllities ¥n respe¢t of the flnancial st8t8mgnts Charity law rgqUIT8S the Feoffees to prepare linanoal staterngrnts for each year which give a tru9 and fail vi8w of the charitls ftrwiual activities during the year and the financial position at the gnd of th8 year. In preparing those financial stalemgnls, the Feoffees are required to-. Sdect Suitable accounting policies and than 8pply thgm consistently-, Make judgments and estifflatgs that aT& reasDnable prudent., State whether applicable acoounting statjdards have been followed, subj8Ct to any tnatErid departures disclosed and explaifj8d in the finaneial statements,. and 14

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUIAPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPOFIT OF THE FEOFFEES Foi the year ended 31 August 2020 Pi8par8 the fi'nancial stalemethls on the going ￿ncern basis unless11 Is Inappropriate to presum8 that th# charity will ￿ntinu8 in businèss. The Feoffees are re5FX)nsiblè keeping proper accounting records which di￿10$8 Wlth r88sonable aocuracy at any time thè financial position ol the charity. They are also responsblg lor safeguarding the a5sgts of thé charty and hence lor taking reasonablè steps lor the prevention and detsction ol fraud and 0th8r irr6gularitlgS. ffegs on 2021 and slgned on theii behatt by.. ved by the Fe M. Edge, Esq. Hon. Treasur Mrs. S. C. Newman Bursar 15

Independent Audilor's Report to the Members ol The Hospllal and Library In Manchester Founded by Humphrey Chetham Esq and Incorporated by Klng Charles11 For tho year ended 31 August 2020 Oplnlon We have auditèd the fi'nancial statements of The Hospital and Library in Man¢h&ster Founded by Humphr8y Chetham Esq and Incorporated by King Charles 11 lor the year endgd 31 August 2020 which compiis6 th Statement of Financial Activities, the Balance Shegt, the Cash Flow Statement and notes to the linancia statemgnls, including a sumrnary of significant accounting policies. The financial reporting frarnework that has been applied in th8ir preparation is applicable law and United Kingdom Accounting Standard5. induding Financial Reporhng S￿ndard 102 The Financial R8POrtlng Standard applicable in Ihg UK and Republic of Ir818nd IUnit8d lthngdom Generally Accept8d Actounting Praeticel. In our opinion the fi￿anual stAtemellts- giv8 atru8 and lair view o1th8 state of the group's and of the parent charitis affairs as at 31 August 2020 and ol Ihg group's iT￿ming resources and applicalion ol resources, lor the ygar then 6nded,' hav8 b88n properly prepared in accoTdanc8 with United Kingdom Generally Accepted Accounting Practi￿., and have been pr8pared in aceordance with the requiremen15 of thè Charities Act 2011. Basls for opSnlon We conducted our audit in accordance wilh International Standards on Auditing IUKI IISA5 IUKII and applicable law. Our responsibilities ynder th0￿ standards are further described in thè Auditor's responsibilities foi the audit of the financial 5tatgtnefitS Section ol our report. We ar8 indèpendent ol the group in aC￿rdance with the ethical requirgtnonts that are re5evant to our audit of the financial statgmgnts the UK, induding the FRG'S Ethical standard, and we have fulfi118d our Dther ethical responsibilities in accordance with these requiremenls. We believe that the audit emdence we have obtained ts sufficient and appropriate to provlde A basis lor our opinion. Conclusions wlwlng to golng concern W9 hav8 nothing to report in rgspect ol tho ftjllowing matters in relat￿￿ to which the ISAS (UK) require us to rewrt to you where: the trust8e5' use of the going concem basis ol accounting in the preparation ol thg ffnanci81 statèments is ￿t appiopriate". or the trustees have rK)t disclosèd in the financKal statsments a￿Y iderrtifved material unc8rtainti6s that may cast 51gnilicant doubt about the group's or th6 parent charity's ability to continue to adopt th9 ooing concern basis ol accounting fora p8riod of al leasttwelve month8frotn the datè when thefinancial stat$ments are authorised lor issue. Othor informatlon Thg trusteES are resp)nsible for th8 Othar information. The other informab.on comprises the inform8tK)n in¢luded In the annual report, other than the financial stalgm9nls atKI our auditor's report thereon. Our opinion on the financial stal8rllellts does not coverthe Dth8r information and we do not 8xpr8ss anyform of assurance oonclusion therèon. n conrEction with our t￿11 of the financial stateEnonts, our responsibility is to read th8 other information and, in doing so. consider whether the othgr information is materially inconsisitsnt with the financial stat9tt19nts or our knowledge oblain9d in the a￿1*1 or otherwise appears to be rnaterially misstated. If w8 Oéntily suth material inwnsist8nuès or apparent material misstatements. we are required to dot$rmine whether therg is a rnat8ri mlsstatement in th9 financial statements or a material misstatgrnent of the other informat￿ll. If. based on the work we hav8 performed, we conclud8 that thor9 is a tnaterial misstatem&nt of this other information, we are required to report that fact. W8 have nothing to reFY)rt in this iegard. 16

Independent Audltor's Report to the Members of The Hospllal and Llbrary In Manchesler Founded by Humphrey Chetham Esq and Incorporated by King Charles 11 For the year endèd 31 August 2020 Matters on whlch w8 are rèqulred to r&port by oxcoptlon We hav8 nothing to report ITr Tespect of the followlng matters in relatioTr to which the Charitie5 IAcLounts and Roportsl Regulations 2008 rsquire us to report lo youll. in our opinion.. thg infortnation given in the financial statetnents is inconsist8nt in any material r8spect wtth the trustees, r8POrt', or suffioient accounting rècords have not begn kept by the parent charity., or Ihe financial *atements are not in agreement wf(h the ac¢ountlng records rolums., Dr we hav& not received all the information and explanations we rèquire for our audll R•spon5ibllllle5 pl FBoffees As explainèd more lully in the190ttees' responsibilities 5tatom¢nt set out on page 14, thè feolfees are respDnsible for the pr9paration ol the financial Statèments and lor being satisfied Ihal they give a truè and I￿r viow, and for ch internal control as the feollges dgtoirnine Is necessary to gnable the preparation of finanaal statement5 that are Irg9 from malerial misstatemènt. whether dug to fraud or error. In pr8paring the financial stalgtnent5, the leoffees are responsible for a5885￿ng the gmup's and tho parent charity's ability lo ¢onlinu8 as a going concem, disd05ing, as appli¢ab18, rllatters related to going concern and using thè goinG eoncgrn basis of ac(x)unting unless the f8offoos either intgnd Éo liqU￿at0 the oharity or to cease opèrations, or have no realistic alternative but lo do 50. Audltor's respvnslbllltÉes for the audit of thè Ilnanclal statement8 We have b88n appointed as auditor under section 151 of the ch8r1l1￿ Act 2011 and r£pDrt in aecordance with the Act and relevant rouulations made or having effgct thereunder. Our obl8ctives are to obtaln r&asonabla assuranc￿ about whether the financial statements as a whole are free from ma19rial tni5Stalement, wh8thar due to fraud or error, and to issue an auditor's report Ihal in¢lud8s our opinion. Reasonable assurancg is a high level of assuranee, but is not a guarantee that an audit conducted in accordance with ISA5 IUKI wll alway5 d8t8et a materlal misstatBmeTrt when il exists. Mis8tatement5 can arise Irorn fraud or error and are considered material if, individually or in th8 aggregate. they could reason8bly be èxpected to inllugnce the economic d8asions ol users taken on Ihg basis ol these linancdal stateTnents. A further description ol our responsibilities for th8 audr( ol the financial slatetnonts is loca18d on th Financial Reporting Coun¢il s w8bsitè at.. www.Irc.org.uklauditorsresponsibililies. Thls description torrn5 part ol our auditor's report.

Independent Auditor's Report to ihe Members ot The Hospilal and Llbrary in Manchester Founded by Humphrey Chetham Esq and Incorporated by Klng Charles11 For Ihe y8ar ended 31 August 2020 Usè of our report This report is rnade solely to the charity's trust68s. as a body, in accordanoe wilh Part 4 of the Charitlgs (Accounts and Reports) Regulalion5 2008. Our auclit work has beèn undertaken so that we rnight stale lo the charity's trustees thDse rnattors we ar8 r8quir8d to state to them in an auditor's report and lor no other purpose. To thp fvllest extent permitted by law, we do not Cle￿p1 or assurN8 r8spc>nsibility to anyone oth9r than the charity and the charitls trustee5 as a body, lor our audit work, lor this report, or lor Ihg opinions wa have foFmed. Crowe U.K. LLP StatLrtory A￿110[ The Lgxicon Mount Strggt hAanchester M2 5NT 25th lune 2021 f8

The Hospilal and Library in Manchester founded by Humphrey Chelham Esq and incorporated by King Charles11 STATEME￿ OF FINANCIAL ACTIVITIES For the yèar ènded 31 August 2020 Notes HOW￿ School Lltrxry Funds gogo Income from-. G￿8￿ble￿¢z1v1ttes.. Sthool lees kncilw Iradlng Olfver bbdlngacllvltle5.' Artwhle3 lOrge￿rakn￿ funds Vfr51nTeftJlS.' Inv6sim¢ni inGom9 Voluntsrysour¢es.' 8equests and dDDailor6 Giants re¢ehY 9,5W.696 132.347 9,589.696 1S9.495 8,982,332 414.842 6,518 45,275 2,532 1e,32S 291.132 582,820 15,835 82.953 83.477 182.266 1719L)5 30,431 1,818,054 438,781 28.467 42,988 1,676,952 481,789 546,15D Totsl Incoming rèsouvcè8 90,174 12,091,363 179,773 12,3SI,510 10.679,049 Experwjlluretsn: Bdsljjg lunds.. Fundraislng Publioty C4nl¢reraGe, lacmlv hlie trading cos15 Financing c￿s Inveslm8fi1 Costs 34,2 89.515 110,034 216.033 3.204 12¢,467 110,034 195.062 109.037 433,247 154.S87 7.545 144996 490 146,2 24.526 14.OJ3 Chgthleactivllle¥.' Teathiw costs-aGadtth¢ Tfra¢hI￿ costs-rnu5 We￿ar Premlses 8chL4aL%hip5 ￿ bursarl¢s Gftnl%. awayrta pNzes bFary wmlng ttts&18 Support and Gov¢inawC￿8 2,121,423 3.765.814 1,180,736 1.920,991 241,672 2.121.423 3.765.814 1,180,738 2,￿5.825 241,672 14,411 20D.B 2,014186 3,906,897 1.324.475 3,041,728 188.186 11234 222.8S4 .463 1080S631 11,705,909 1,074,834 1,600 ?￿￿25 1 D86.967 1.308.625 9 328 787 9.760,470 202 379 10 61A 118 216,382 11,285,477 Toial wsouvce8 expended rietlnccqnel(expendlturel 2,330.893 I36,6￿) 1.D75.833 I1,￿26,860) TrdrElerbetwB£n 1727,0001 22,ODO Gsins1110SSBsI on wweslmeni assets.. 134.0621 44.709 123.3831 5,221 1208,1341 122,56D 1265.5791 402,490 261,4 1303,72n Unreai4£d Nei movemBnt In l￿dS 15D2.8041 1,615.731 1100.1&1 1,211744 11,o69,L￿9) Fund baknce3 at I $8ptpmbBr2019 331Z4842 1DD18584 2 790 564 45 928,9 99B 079 Fund b&lan¢ots at 31 August 2020 32 62&038 11 829315 47141 734 45 ¥28 990

The Hospital and Llbrary in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles 11 BALANCE SHEET For the year ended 31 August 2020 Note 20 2019 Flxvdassets H8riiag8 assets TanglNe fixed assets Inv8slm8nts 115,lYJU 34,874,8TI 115,000 35,776.647 4187670 12 43,298.172 4D,079,317 cur￿￿1&S88ts DgbtDrs feB5 other dèbtors arKJ wepaym&Trts cash at b8nk and In hand 464.693 1,519,429 428.105 9,204 10440241 13 6,918,463 11,207,550 Credllors: amounts f¥llng du8 ￿t￿n on6 year 14 8289125 Atsl current assets 7@18425 rolalassgls less currn?t 118bllllles 49,072,853 47,997,742 Credllors amounts fdling duo after mor8 Ihan onè year 1931 119 rot8lnetassets f6 Endowment lunds Reslrlcl6dffunds Unrestrlrted lunds %7 18 19 2,97S,678 35,587,455 578 601 2,833,335 36,039,077 Tolallunds Hospltal funds School lunds Library lunts 32,622,038 11,829.315 33,124,842 10,013,584 Totallunds 16 Thg financial Statements werg approved and authorised lor issue by tho F90ffges on Z3rel 2021 ands d on their behalf by.. P. A. Lee. Esq. Chairman MEd Hon. Esq asu 20

The Hospital and Library In Manchester funded by Humphrey Chetham Esq and Incorporated by Klng Charles11 CASH FLOW ST ATEMENT For tha yoar end9d 31 August 2020 Cagh Ilow s18temenl 2020 2019 Nei tash (outflowylnllow Irom owattons NetC3sh (tssed byyprotrthd byoperaiing 11,259,275) 1.112,014 Cash Ilows Irorn Invgstlngactlvllles Inve&tm8ffl income Bankltson and intsr8sI payable Paymenls to wrthase buildings and othEI fFxed assels Payments to acquire Inv&stm8nts. irEcludlng cash awaltlw Inv8Stment RÈc8ipts frorn seles of Ilxsd asset investmenls I￿reaso In cash hdd by inve5tm8nt advisors 186,266 f72.905 1146,2001 1154,3871 1175,6S41 1725,64DI 16.43U,3101 12.836.487) 2,758,640 2,876,196 1302,0441 138,0831 Net ¢a$h used In Invesllng athvitie 3tr2 705 Cash flow Irom Ilnanelrtg attlvftl8s Bank loan r8payment5 Not cash used In flnan¢lng actlvttles chan￿ c88h 8ndcash equlvalents In the r8POrtlngpÈrlod Cash andcash &qulval8nt af the begin￿ng0f th8p￿iK* C8sh andcash 60vI￿lent atths 8ndofth&p8rlod 15,505,9001 2È4,423 1015581 21

The Hospilal and Llbrary in Manchester funded by Humphrey Chetham Esq and incorporated by Klng Charles11 NOTES TO THE CASH FLOW STATEMENT For the year ended 31 August 2020 Reconclliation ol not expendltur8 to not oash flow from op¢ratlng activities 2LP20 2019 Net in¢oMinglloutgoin91 resourees Depreciation Investment incom8 Bank loan intere* payable IlncrèasellDecreaso in debtors IDe¢reas8lllncrease in Creditors 1,075,833 11,026,860) 1,077,424 1,042.835 1186,2661 1172,9051 146,200 1 54.387 11,216,813) 987,862 12,155,653) 126.695 Net cash louttlowifinflow from operatino activitles 11,25g,2751 1,112,014 Analysls of ¢•$h and cash equivalent 2020 2019 Cash at bank and in hand Cash on depos 3,404,361 1.529,980 S.915,770 6,524,471 4,934.341 10,440,241 Roconcilialloft of not debt Atl Septefftb&r 2019 At31 August 202f3 Gashllow CBsh al bank and in hand Bank loan du8 in 18ss than one year BarTk loan due in greater thall onè year 10,440,241 1126,6491 12,068.7521 15,505,900) 4,934.341 18,3101 Ifj34.9591 137,633 11,931,119) 8,244,840 15,376,577) 2,888,263 22

The Hospilal and Llbrary in Manchester funded by Humphrey Chetham Esq and Incorporated by Klng Charles 11 NOTES TO THE FINANCIAL STATEMENTS For thè ended 31 August 2020 Statement of accountlng policies Basls of prgpardlioft of accounts The financial 51atemonts have been prepared in accordance wilh the Financlttl Repryting Standard applicable in the UK and Republ￿ ol Irel[1￿ IFRS1021, the Charities Act 2011 and the Statement of Recomfflended Practi￿ applicable to charitiès preparing their acwurtts in accordance with the Financial Reporting Standard applicable in th9 UK and Republic of IT81and IFRS 1021- effecbv8 1 January 2015. The FourKlalion has tak8n advantage ol the exomplion available to a qualifying entity In FRS 102 from the requirgtngnt to present acharity only Cash Flow Slatemgnt wilh the con501"vJated linancHI statèm&t)ts. The functional currency ol tha Foundation is considèréd to be GBP bgcauso that 15 the currency of the primary economic environrn8nt in which the Foundation gperat6S. The acCO￿￿t5 ale drawn up on thg historical cost basis of accaulltlng, as modified by the revaluation ol invsstmant propertl8s and other investments. The FourKlation is a Public Benefit Entity registered as a Charity in England and Wales. It is regis18r8d as a charty on thé Charty Commission w6bsite Icharity number= 5267021. No Materi￿ unc8rt8intiès that may cast sionificant doubt about thg ability of the Foundation to wntirTru8 as a going concern have been id8ntlfied by the Feoffegs or School Governing Body. The Foundation has a Fundraising Stral8gy ir? place to continu8 to raise the necessaryfunds for the Site Dèvelopment Project with ov8r £48 million having bgen raised to date. Th8 upgrading ol the boarding accommodation in the Millgato Buildi￿ is the next priorily, as WEII as the opening of the medieval buildings as part ol the Visitor Attraction Project. A signrficant proportion of f8è income for the School is receivable from the D8partment for Etlucation IDfEI thè Musio and Dance Aided Pupil Scheme IMDSI. In the current year £7,209,269 was recoivable12019 - £6,621,0191. The DIE have provKled assurances to the School that they foresee the MDS Schemg being eontinued in its curienl form for the foreseeable futur9. Thg truste8s arKI tha Senior Leadership Team are cltrsely monitoring thg progress ol the cov￿-19 global pandern￿ atKI its itnwact on Chetham's. The School's students were sent home atthe and of March 2020 as thè Governmenl dos8d all schools. The Litx-ary closed to all visitors al the same time. The School's Workfor(￿ immediately started workino Irom home, providing on-line music and academic èdueation and pastoral support for all sttlden￿ The DIE has confirméd its support for the School and the Music and Dan￿ Schem8 funding is unaffe¢t8d and continues to be paid, Parents of studenf5 W8r8 givan 16e rEductions lor the Sumrner tsrm 2020. the reductions b8ing basèd on savings that the School has been able to make. The Library's income forth8 currènt year will be18ss than Or￿inallY forecast but its resorves are morE than sufficient to ¢over this reduction. Th9 Feof*Ees and School govgrrtors consider that Chetharn's is able ID CDtJtinue as a going conc8m for the foreseeable future. 23

The Hospltal and Library In Manchesler funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the yèar èndod 31 AugLFSt 2020 Statement ot accounting pollcles Icontinuedl Unftlng dAreGllgn A Direction was is5Ugd by the Charities Cornm1s￿On on 25 June 2004. This links the Chgtham's Hosytal, Sthool and Llbrary charitable strands loi the purposes of reglstration and accounling under the Chariti&s Act 1993. Tho Charity Gommission has agreed to the adaptod fomiat ol the Stat￿￿ent ol Financial Activities whereln funds are catsgoTisod by component charitabl8 strand rather than by type. Ghelham's Hall Latnited is a subsidiary undgrtaking that is a wholly own8d subsidiary ol the Hospital. Chetharn's TradinG Limitod is a subsidiary undertaking that is a wholly owned subsidiary ol the School. Thè r6suIts ol both Subsidiaries ale included in the accounts of the relevant charity. F88s and simllarlncome Fees r£e6ivable and charges for semces and use of premlses are accounted for In th8 period in which the service is providad. Fees receivable are slated after deducting bursaries granted by th8 School. but include wntributions received fiorn R8Striet8d Funds towards foes. Donations 8ndbequests Donations and bèquests receiv9d for the g8n6ral purposes ol Ihg Found(ition are credited to unrestricted lund& Donations aTrd b8qUaSts subject to specifi¢ wishes of the benefactors arè credited to roslricted lund& or to endowment funds wher8 the arnount is required to be hold as permanent capital. Donations and bequests are accounted for as and when entitlem9nl arises, the amount can bo reliably qualified Ihe eix)nornic bénelit to the school is considered probable. InvesfnHIt gnd ¢gv8nant Incon CrEdit is laken for irFve51m$nl and covenant in(x)rlle. including related taxation. on an accruals basis. Thè income from COIF Accumulation unts is automatically reinvgSted and this incom& not disclosed as such in the accounts becausg there is a oorresFK)nding Incraase in the valuation of the original subscrib8d units. Expgndilur8 is aocrued as soon as a liability is considered probable, discounted to prgsernt value for longer- tertn liabilities. Overheads and olhar costs Trot directly attfibutable to parbcular functional activity categories are apportion8d over the relevant cat8goriès on the basis ol management esbmat8S Df the propOrt￿nS ol indviduals, tsmg attributable to that activity in thè y8ar. The irrecoverable element of VAT is incI￿￿ed with the it8tn ol expense to which ti rélatas. Govèrnan￿ costs cornprise the CDSts ol running th8 charity, including Strateg￿ planning lor its futur8 developtnont, also oxternal audit, any18gal advice lor the Feoffees and School and knbrary CDrnmlttees, and all costs ol complying with conslilutional and sttttulory requirements, SL￿Ch as the costs of meetinos ol the Feoflges, the School Gov8rnl￿g Body and the Library GomTrittèè and ol preparing statutory accounts and satislyillg public accountcibility. T8nglble flxed assets and depr8ciaUon Th8 Foundation's Collections and Management Plan, availablè from Chetham's ￿b[arian upon request, details the Foundation's poliey lor the acquisition, preservation, managem8nt arKJ disposal ol its horilage assgts. College House and the Collections are deetned to have ir￿eter[￿l￿2ts lives and Iherglor9 the FEoff96s do ntst consider it appropriato to charge dep￿CIation. 24

The Hospital and Library In Manchester funded by Humphrey Chelham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For lh8 year èndad 31 August 2020 Stalement of accountlng pollcles {continued) College House The site of Chethatn'5, on a sand5tonp outcrop at th8 conlluance of the Rivers Irw811 and Irk, has been ol stratogic importance and occuppd sirKe Rotnafi tifflgs. College Hous8, in 1421, was the larggsl building in the medieval town ot Mwhest6r. The buildings have been used to house the School since 1653 and are Grade 1 listed. The Feoffees consider that, owing to the incomparable nature of the buildings, conventional valuation pprDaches lack sufficient reliability and even ilvaluations could be obtained, the costs of dolng so would be onerous comparod with the addthonal benefits derived by the Foundation and usèrs ol the accounts. As a r6suIt, no value is reported for this asset in the B￿a￿e Shèèt. Tha Llbrary's Collections The knbrarls Collaclions were started in 1655. From illuminated manuscripts made for kings and queens to the minutiae ol personal life-diarles, letters, account books-the Librciry has a wedth of special items and coll8tttiDns. Chetham's holds overlorty tllEdleval manuscripts, including the thirteenth contury FlorEs istonarum of Matthew Paris. The Collections are rnainly Gonceined wlth the history of the North West ol England and include the lirst ever censu5 of Manchester comp'led in 177&74. There are w911 ovor 120,000 prlnted Vcems, ov8r half of whlch were wblished beft>ro 1850. It is considèred that obtaining valuations for the vast majority ol the Collections would inVDIvè disproporbonate (x)st duè to the size and divgrsily of the items and so th8se assets are therelor9 not f8cognised in the Balaw£ ShgQt. Sigrlificant acquisitior)s frorn S8plgmber 2009 onwaid5 will b8 r8ported at cost, where th8 it8m is purchased, or rf donated, at the current value il it Is roadily discernable, lor examp18 by usino a probate value. The F8offees wll very occasionally approvè th6 dis￿SaI of itgms of th6 Colleciions, lor eXa￿np￿ whèn an item is ol doubttul provènance or is a duplicat9 0* an itetn already in a Co118Ction. Where items that are not r8cognis6d as fixed assets are dispos8d of. the proceeds are reportEd in the Stat9ment of Financial Activits'es. Disposal proc88ds are also disclosed sgparalely in tho ￿te$ to the acwunts. The Collections are deemed to Flav8 indefinite lives and th8r8loie no depreclation is Charged. Preseryatlon costs Expgndilure which, in the Feoffegs, ￿9w, is required to preserve or ¢18arly prèvent further deterioralion ol College House or individual Collection items is re¢ognis8d in the Statement ol Financial Activthes when Vc is inwrrod. Other assets The cost ol Ireahold buildings which are not dassed as heritage assets is wiitten off by annual installments ovei thoir gxpected useful lives as follows.. 25

The Hospital and Library In Manchester funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL sTATEmE￿rs For the year ended 31 August 2020 1. Statement of accounting poll¢les {contlnued) Freehold buildiros.. 40. 60 years The cost of the land acquired in 2008 is not written off but is k8Pt in the aocounts as a capital iiem matched by a restricted Capital Fund as it5 purchase was fund￿ by a giant from the NWDA for that specific purpose. Exponditura on instruments, furni￿re and equipment elc. costino less than £fO,ODO is written off as an èxpense in the ygar i￿CUrred. Dopreciation is provided on the cost ol taryible fixèd assets. to write Ihcrn down in equal instaltnenls ID their oslitnated residual values based Current ￿￿ke1 prices over their expectsd usgful lives as follows= Furniture, fittings and aquipment- IrTrstruménts'. 5 years 3 y8ars Grants received towards capital eKpgnditure are ¢redited to th8 appropriate restricted fu￿ UFK)n entitlement Ihef¢to', arEy depreuation ol the gTanl-lundecl pyoportion of such fixed assets gxpendituts is Charged to thè related restricted fund. Invg8tmtftts Invgstments are valued in the bdancB Sheet at their mid-markot value at the balanc8 shèet date. Investment manag9ment fees are accounted for as incidental eosts of th8 ac4UiSition or disy)sal where Iransaction-baséd. Other managemgnt fee5 arè disclosed separately as Resourcos Expended in the Stat8m&nt ol Financial Aclivilics. Investment in subsidiaries are valued at cost less provision for imparmgnL 26

The Hospital and Library In Manchester funded by Humphrey Chetham Esq and Incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For iha year endad 31 August 2020 Statement of accountlng pollcl8s {contlnuedl Penslon sGh8m•s Contdbutlons are made to the mulli-8mployer defined b8n8fil Teachers, Pengon Scheme at rates S&t by the 8ch8me Aetuary and advisod by the Scheme Adrninistrator. Contributions are also tnade to the G￿atEr Man¢hest81 Pension Fund, a rnulli-employer defined benefit pension scheme, lor a small number ol non-teaching stall, and also lo a rnoney purchase pension scheme for other non-teaching staff. In accordance with FRS 102 all schgmes are accounted lor as defined contrbution sch&mes and contributions th8relore are Charg￿ in the Statement ol Flnancial A¢tivl(18s as they becomg payable. Operatlng leases Rentals applicable lo operats'r)g lea88s Ar6 charged to the Statement of Financial ActIV￿oS as they fall dug. Taxatign As a reaislered charity, the Follndation and its a550cialed funds are Th)t subject to taxation ()n its su￿1￿se￿. However, provision is made lorcorporation tax on any trading profits g8n8rated by Chetham's Hall Limitgd afjd Chetham's Trading Limited alter provision for Gift Aid paym6nt. Flnancial instrumènts Basic finan￿aL instrutnents are initially recognised at transaciion value and subsequenly measur8d at amortised cost with th8 8XC8Ption ol investments which are hold al fail V£ilue. Financial assets h8kl at amortised cost cotTrprise cash al bank in hand. together vAth trad8 and other debtor5. A specific provision is tnade for debts for which recoveratility is in tkjubt. Cash al bank and in hand is d8fined as all cash hold in instant access bank accounts ar¢d used as working capital. Financial liabilities hold at amorti5ed cost compris8 all trèditors except social seeurty ar)d other taxps and provisions. Assets and Ilabilities held in lorgign eurrency ars translated to GaP at the balance sheet date at an appropriat8 y8ar end &xchange rate. crit1￿1 accDuntlng judgemènts and key sourc8$ of estlmation un¢8rtalnty In the application of tho accounting polici85, Feoffees arKI School Govfyrnors as trust9es arè raquired lo tnakè judgernerFt, estimates. and assurnptions aboul the carryqng value of ass8ts and liabilities that are not readily apparent from oth8r SDurces. The 8stimates and und8rlying assumptions ar8 based on historieal experi8nce aNI other factors that ara eonsidered to bfy relevant. Actu81 rèsutts may diffgr from these estimates. The estimates and underfwng assumptions ar9 ieviewed on an ongoing basis. Hgvisions tr) accounting Estimates are r8cognised in th8 periixl in which the estimate is revised rf th8 rèvision affects only that period, or in the period ofth8 r8Msion and fulurg pgriods il the remsion affected current and future periods. In the view ol the Feoffees and Sthool Governors, no assumptions concerning the future or 8Stimation uncertainly affècting assets or liabillties at the balanc6 sheat dat8 are likely to result in a material adjustment to their oarrying amounts in thg next financial year. 27

The Hospllal and Library In Manchester funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For th8 y8ar èndod 31 August 2020 Fegs receivable 2020 2019 Gross f88s re￿[Vable Less.. total bursari8s, grants and allowances 9,701,503 1353,4791 8.982.332 1188,7861 9,348,024 8,793,546 Schclat511ips and bvrsari8s flnanced from restrict￿ and gndowm8llt funds 241,672 188,786 The total educatDnal awards financed from restrict8d futKI8 com￿se. 2020 2019 Scholarships and bursaries Gran15, awards and Prizes 241,672 12,485 188.786 10.489 other trading actlvllles 2020 2019 TradSng income, surlltngr schools and facility hire Trading incomo includes £43,275 12019.. £87.0031 in relation to Cheth&m's Hall Limited and £216,445 12019.. £347,244) in ￿lation to Chetham's Trading Litnrt8d. 28

The Hospitsl and Library In Manchester funded by Humphrey Chetham Esq and Incorporated by Klng Charles11 NOTES TO THE FINANCIAL STATEMENTS For tho year ended 31 August 2020 Investment Income 2020 2019 Income from UK Ilst8d investments Igrossl Int8rest on funds deposled on bank rsserve accoui)ts 161,478 20,788 134,715 38.190 Bequests and donatlons During the year signfficant bequests and donations were gratefully rec$N8d from the following.. The Andrew Lloyd Webber Foundation, the 86averf)rooks Charitabla Trust, the estat8 of the late Mr A Chesters, Ms E Gaiside, Mr D Gaskill, the Haworth Charitabl6 Trust, the Levgrhultne Charitable Trust, Ihg Ml¢hael Bishop FoundatlDn. tho Stoller Charltablo Trust and the Zochonis Charitable Trust. Donaiions were also roceived from many other sour¢es and the Feoffe8s and School Governors wish to express their sinc8re gratitude to all donor5. Other Income 2020 2019 Charltsblè actiwtl Concert income Piano Summer School Sundry income 11,464 93,207 34,824 21,677 348,602 44,563 Expenditu 2Q20 2019 Charitable expenditure inoludes.. Depreciation of fixad assets Audrf(ors' remungration.. audit saThriees Operating leas8 Costs 1,077,424 19.609 1,042,835 18,448 The abov8 èxcludes rent of £627.00012019- £627,000> paid by Chetham's School of Musicto Ghetham's Hosptal which is 81irninat8d by way ol transfers between funds (not8 101. 29

The Hospllal and Llbyary in Manchesler funded by Humphrey Chetham Esq and Incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the year bndèd 31 Augusl 2020 Employmgnt costs 2020 2019 Wau& and s￿arieS Social security costs Pension contributions 5,667,740 474,144 892,288 5,643,691 472,219 619,843 The average monthly number of smployees in the year was 34512019- 3541 ol which 18012019- 1871 weie teaching staff. The kgy Thanagement pe￿o￿ne1 comprise Ihg Principal, th& Bursar, the Director ol Musi¢ and Chètham's Librarkan. The total etnployment t￿nefitS of th8 k8y management Pgrsonnel were £468,25812019'. £480.0301. Total efflployment t*neftts include gross salaries, empk)yerfs National Insuranc@ Contributions, etnployèr's pension contributions, beneffts in kind and Class 1A National1nsurance contrib￿b0￿S on those benefits in kind. Neither th8 F8oflees nor members of thè offter Foundatior? Commlttees nor persons Connected wf(h th8m Tecewed any Temuneration, other ￿nefIts or reimbursement ol expgnses from the Charitiès or from any conneoled orgarFisatlon during this ytrar or the pr8ViOUS y8ar. During the year th9 School paid £3,45012019- £5001 to on912019- one) employeg arKI the Library paid £nil12019- £12,743) to no12019- one) employe9s undèr confidential settlement agreements. Tho number ol employ888 whose emoluments 0%￿eded £60,000 was as follows.. 2020 2019 No. £80,001 to £70,000 £70,00110 £80,000 £80,001 to £￿,000 £90,001 to £100.000 £100.00110 £110,000 £110,001 to £120,000 £120.001 to £130,000 £130,001 to £140,000 Contributions paid In the year lor the piovision ol money purchase PEnsion s¢h8m8s lor higher paid ern￿oyeeS were 216,255 12019 - £12.2931. There is 1 12019 - 11 higher paid em￿0Yee to whom retsiernent benefits are a¢¢ruing under MOn9yp￿rch8sa seherne8 and 312019-31 higher paid amployees in defined b8n91it schemes. so

The Hospltal and Library in Manchesler funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the year èrKlèd 31 Augusl 2020 9. Analysls of total rgsources expended Staff sts Olher costs DePre￿allOn Total 2019 2020 Cost of generatlng funds Fundraising Publicily Conferencè, facility hire and trading costs Finan￿n9 Costs InvestfflErit management costs 84,821 98,660 39,846 13,374 124,467 110.084 195,062 109,037 108,476 158,681 146,200 262,137 146,200 2.689 154.945 284,757 382 607 667 364 899,278 Charirable 8¢flvltl•s T9achino costs- acadernic Teaching costs- music Wellaro PremBes Scholarships & bursaries Grants, awards & prizes Library costs 1.926,123 8.275,717 494,080 870,483 195,300 470.610 686.658 1,067,405 241,672 14,411 2,121,423 2,014,186 3,765.814 3,906,897 1,18D,736 1,324,47S 2,995.825 3,041,726 241,672 188.786 14,411 11,234 222.864 1077424 10520 708 10,710 168 19,487 1,057,937 131,561 6 697,964 2745318 GOVernar￿ Costs 97,407 96,463 11.285 477 11,705 909 7034 172 3,173,881 1077 424 Conf8r8n(* and facillty hir9 includos £43.22012019'. £86,657> in relaliDn to Chetham's Hall ￿MIt8d and £215.85012019= £285.6421 in relation to Chetham's Trading Llmited. 31

The Hospltal and Llbrary In Man¢hester funded by Humphrey Cheiham Esq and Incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For tho y￿r ended 31 Augusl 2020 Analysls of tolal resources expended (continued) Total resources expended is £889,921 12019- £874,810) in r8spect ol support costs detailed below, that have been allocated to th8 above expense hgadings. HosM8J School Llbrary Total 2020 Tolal 2019 Support Costs Managem8nl AdTninigtration Fleeruitment Offi1￿ ctrsts 122,502 228,571 18.695 52.076 68,401 183,297 131,561 11,682 254,063 240,253 18,695 67,083 68,401 188,297 271,412 259.208 25.143 66,914 69,160 119,540 694 14,313 Legal and professional Insurance 694 731671 889 921 874810 10. Translers between funds Ume*rfrt&SFuntls Gen&ral D&8tyale Re51riGted E￿￿DWMertl FiJndg Funds Tolal Funds Hospllal Rent from Schod Contr1t￿tIOn to Chetham's Llbrary N8w Schcrf)l Development Fund Contribution frorn scho￿ for lh8 Site Dev&bt¥nBnl Prol8Ct Palalne Dgmolllkln Project 627,000 122,0001 1267,7171 827.000 122,0001 267,717 100.(KlO 100,(K)O 287,283 705 000 School Rent paid to HDspMal Contribulon from Scthol lor the Sits Dw8lDPtnent Prol8Ct Tianslw lor Camer8ta PTOjeCt Translw from SOM Anryversaiy Fund Transfer ILY Dlning Room Refuri¥shm8nl Chgsiers BÉquést Transfer for Chillor Unit Transt8r for Millgale Proj Tran5f8r of Tours Transf8r for IT upgrad8 cOnft￿[Us ¢lassroom costs 1627,0001 1627,WOI 11(X),0001 1100,WOI 19,5001 9,￿)0 19,5001 9,50D Iso,0001 11,225.1411 16.0001 80,OBS 50,000 1,225,141 e,ooo 180.0851 170,729 1170,7291 1,757 32 1031757 727 000 32

The Hospltal and Library In Manchester funded by Humphrey Chetham Esq and Incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the year endod 31 August 2020 10. Transfers betW88n funds Ic¥nitnuedl Unr&strict8dFunds G&neral Dèslon8Èwl Rsstricted ErkYO5￿￿e￿È Funds Funds Total Funds Ubrary Conlfibution frotn Hosptt Transfer fmm Ubrary Patro[￿ Fund 72,WO 22,000 1,456 TOTAL 1 081757 11. Tanglble flxed assets Heritage Assets Fr8ehold Prop&ty Furniture, Fitrpngs, Plant & Inslnjments Equipment Total Cost.. Al 1 Septe[n￿r 2019 Additions 115,000 43,952,1 f5 46,7S3 613,518 128,9)1 183,173 44,8&3,806 175.654 At 31 Augus12020 115,000 43,gg8,868 742,419 83,173 45,039,460 Depr8ryation'. At 1 September 2019 Charge lor thg year 8,581,105 9S6,877 252,576 101,080 f58,478 19,4B7 8,972,159 1,077,424 At 31 ALwusI 2020 9,517,982 353,636 177.965 10,049,583 Not book value- At 31 August 2020 115.000 34,480.88e 388,783 5,208 34.989,877 At 1 September 2019 115,ODO 35,39f,010 360,942 24,6 ,891,647 The Cost of tangib18 fixed assets includes the cost ol land at Walkers Croft, whleh was purchased in March 2008 with the support ol a giant from thè North W&st Developrtsent Agency INWDAI- This piece ol land is *cured by legal charges infavcmjr ol Nal Wesl as 5ecuritylorthe 2011 bank loan and secondly the NWDA pursuant to a Funding Agreem8nt èntered into at that titno. Information on Herltage Assets is giv9n in Not8 1 to the accounts. There has been on$ signillcant acquisition but rK) disposals of heritage assets lor which valuabons are available during the last fiv8 y8ars. ¥ivg ygar liTranc1￿ summary of H8rita0o Asset transactions.. £C120 2019 2918 2017 2016 Additions.. DonaliDns 85,000 Total 33

The Hospllal and Library in Manchester funded by Humphrey Chelham Esq and Incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the ygar andod 31 August 2020 12. Investments Restrioted Unrestrict6(1 Funds Funds Endowment Funds Totsl B&lance at 1 Septomber 2019 Additions Disposals Flovaluation gains Chwgo in arnounts awwting Investment 950.806 4,210,178 1566,8241 253,039 39,620 62.824 3,197,244 4,187.670 2,165,308 6,438,310 12,415,884) 13,024,219) 48,982 402,490 469 270 000 2,114 302,044 Balance at 31 August 2020 5117199 3 125 580 8 306 295 Historical cost ol listed invgstmonts 4.446 964 59,890 2.522,226 7 029.080 Listed on UK stoth exehange Cash hokli 4,847,065 61,333 2,183 3.093,841 8,001,739 304.556 8 306,295 5,117,199 3 125,580 All investments ar8 held to provide an inv8Stm8nt rgturn. 13. Debtors {excludlng fees) 2020 2019 Other debtors PrepayrN8nts Aecrued income 179,211 72.558 1267 680 179.265 90,073 1 519.429 339,204 £3,66212019.' £111 was written off in th8 yaar for bad debts and a further ￿5,257 increase wa5 m&do in the provision12019'. in¢rgaso 01 £17,778). 34

The Hospital and Llbrary In Manchester funded by Humphrey Chelham Egq and Incorporated by Klng Charles11 NOTES TO THE FINANCIAL sTATEME￿rs Fortha year ended 31 August 2020 Creditors: amounts falling due within one year 2020 2019 Bank loans {￿ta 151 Other credi(ors and aecruals Fees r6ceived in advancg Irorn DfE 134,959 1,006,823 126.649 1,262,476 1 g)0 000 15. Cfedltors.. amounts falling due after more than one year 2020 2019 Bank loans 1931 119 2 068 752 The total bank loans oulsianding al 31 August 2020 amountsd 10 £2,066,07e12019 - £2,195,401). Of thls amount £134,95912019- £126,649) is repayable withirn one year and is therefor6 included in currerrt A bank loan of £3,000,000 was taken out in May 2011 lor a 20 ygai period to help to fillarFc8 the CDnstruction ol the New School Bullding. The loan intgrest is fixed at $.4% lor the lite of the loan. The loan is secured by first18g81 mortgages over th8 freehold Lqnd on the north slde ol Long Millgat9, Manchester and Over the freehold property of the Hospital and Library, tog91her with the land on Walk8rs Groft whEre the Now School Building is situated. 35

The Hospital and Library In Manchester funded by Humphrey Chetham Esq and Incorporated by Klng Charles11 NOTES TO THE FINANCIAL STATEMENTS For the y8ar ended 31 August 2020 16. Allocatlon of the charlty's net assets The nel a55ets ara held lor the various funds as follows: Fixecl Assets N8t currént asselsl (liabiithèsj Long term liabiliti8s Tofél Invgslments Hosplt81 Unie5trictBd R8Strlctè Endowm8nt 1,852,603 32,162.769 2,881 4,695 277,021 1724,4051 222 2,132,505 29,861,940 627 593 32 6Y2,038 84,015 372 984 947 447,162 1931 119 School Unrestrie ResldctÉd 854,297 5,208 34,7S4 4.762,504 5.237,332 935,220 6,126,383 5.702,932 9,505 4 797 258 8172552 11829.315 Ubrnry unrestr￿$￿ Restrict Endowtn8nl 115,000 25,BB1 178,832 22,583 319,713 22,583 2a48.085 2 690 381 2 498 209 It5000 2,524 090 Total LJnr￿IrICt8d Restricted Enthwmant 2,821,9(X) 32,167,977 63,516 5,117,199 3 125 580 5,693,185 233.398 149902 5 776 681 8,578,601 35,587,455 2 975,678 47,141734 24 989 877 8.306.295 1 931 119 17. Endowment funds arjce at Trwksffws Balanc& 81 I S8Pt&mb8r Irthmlng Fl8sources Inv8Stfflent tseiWÉèn 81 Augusl 2019 Resour￿$ 8xpgnded galns/{loss8É1 funds 2020 Ho8pltal Invesltnonl Re￿a¢￿D￿nt Slnkiny Funds EF Jacab Endowm8nt FUNI 464,800 26,690 491,490 142870 607,670 19,923 627,593 Llbrary Grants from Heritag8 Lottory Fund 2.225 665 122.420 Total 2,833 335 2 975,678 36

The Hospital and Library in Manchester funded by Humphrey Chetham Esq and Incorporated by Klng Charles11 NOTES TO THE FINANCIAL STATEMENTS For the ye•r endgd 31 August 2020 Hospital Investment R8placement Sinklng Funds Under Scheme5 apF)roved by the Charily Commission8rs, Hospital investments worth 2188.340 wèr sold betw6&n 1981 and 1992 in ordgr to provlde finance loi tnajoT CapIt￿ purposes, subject to the restoration ol th8 original sytns by means of annual i￿V8stmentS through Sinking Funds. Thls was achigved durfng thè year to 3151 August 2014 and the Schen7es have been discharged. EFJa¢ob Endowment Fund A fund for the gen8ral banetit of the Hospital. Any inwm¢ generated is creditgd to unrestTit8d reserves. Llbrary Endowment Fund The Heritage Lottgry FU￿ grants ware given in OTd8r 10 prowde substantially improv8d invèstm6nt incomé and thereby to enable improved facilities in the Library. Aceordingly, investment income and realised gains, togethor with expenditure therefrom, ale included as part ol Gener￿ Fund tnovem8nts in the Sla18m8nt of Financial Activities. 37

The Hospltal and Llbrary In Manchester funded by Humphrey Chetham Esq and Incorporated by Klng Charles11 NOTES TO THE FINANCIAL STATEMENTS For tha year ended 31 Augus12020 18. Restricted *unds Tra￿feL9 betwgen ￿n￿lmEntS fun65 galnsl(106$6s1 Balan￿& 31 August $6Ptember I￿on￿O Reswrces 2019 resgui￿S expende Ho$pllal Ca￿tAl FuThJ- Millgats a[￿tal FuThJ- New Latyj Ca￿tal FuThl- New Schwl Buil￿ Ca[￿tal Fu[￿-N￿b￿l18 C￿￿e￿￿On CaFNlal Fund-ConGert Hall IMprov￿llts Fu NewSGFwl 08v8lDBrEni Fund Nlthols Bulding Corwersion Fund Con¢prt H&ll Fund In5trurn8nl Fund Fund Mwollwus F￿nd 1,014,85B 4,500.OOD 19.445.309 4.939 7,452,020 21,474 I2.￿3.276) 1&3,8211 1273,%WI 161,Q89 32,616 199.6881 975,18B 4,500,DOO t8.819,287 S16,433 7,251,882 22,569 1£246.7WI 130,48 1289,76n 160,875 32.478 294 29 861940 1626.0221 12CMJ,1581 719 28,43f 376 1142,5961 301.051 99,3 33,3 6.973 2,082 11,$001 17.5871 12,22 30 492400 S¢htsDI Verllon FBthy Fu￿d Haz￿ Smllh Fund Ida Cayrol Fur HosFxlal Prize Fur￿ Kolbert MusicPrize Fut Acadvmlc Priie& Fund Pfizeg ￿u[ Compplilion Fv DaviLS Hanigan Memorial Piano Fund Vini BuY%aYy Fund bAiln& Fut rsBry Fund Palf￿ Famlly Bu￿ry FurKI Andrew Uoyd webkrFQyr￿•vDTh Bursary Fu Levèrhultne Trust Bur58ry FUNJ Hospilamets CaTty Fur Mdk)r En￿V￿Q￿l Fw Pjny Walson EndDArynent Fund JDhn Buw Fmd Sioller Bwsary Fur Elhel Kerry Bursary FLVKI Ha¥dshlp Fu CTrop Fund kIL£c￿laneoUS RestriBted Futvj Fun¢ Chpiharn'8 Fmd Chets in LondDn Fu sioller Hall Fund s￿ Annw&r8￿ FurKI Fund- Insirument5 Corluclus Cla8sfoDm Fund Piano Sufflmpr Fund Grants and 01￿[ It￿£￿& Fund 14,968 98.35 6,631 82,294 2,334 300 14,968 61.￿6 s.￿1 B1289 1202 137.Cl)01 11,40DI 1251 25 115n i(x) 100 ￿2 232 3.525 35.470 173,377 1,374,942 1,168,S53 IQD ii.o(x)I 34,870 224,195 1,545.4S1 1,138,353 50.818 162,99D ,531 176.0321 127,0001 I￿.000} 134.6241 .000 89,418 $4.744 15,838 5,345 24.551 s),000 3,304 1,891,599 2.283 1,665 68.212 65 18,076 3,400 16,851 102,182 5,279 24,381 50.D 2,927 1,902,921 11,5 1,6 S7,9 512 33,815 4,445 5.$59 46,652 24,6 66 170 2D?70 119,9931 19,5001 i%oi 14471 3.859 11,0451 13001 129,5641 119,4881 11,492 91594 19,5001 23,707 98.207 11.4301 22.277 118,531 207 638 5 702 932 150.7 213831 5518781 If25,4301 12 23B 38

The Hospilal and Llbrary in Manchester funded by Humphrey Chetham Esq and Incorporated by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS For the ye•r andod 31 August 2020 18. Restriclgd fund8lcontlnwll alancgaf I rransfers alsnceat 51 Ausust 2￿0 Llbrary 20YS iesounx expended fvnds g￿n￿{k)sSes) J Paul Gèty Fund MiÈctrllan6oJ$ Resithled Fund Ubrary PallDnS Fund K4rl MarA Fund Arts arf Fund BoDlh Charkleg Fund Ftills Archlve Fund HLF Prolecl Fund DCMSIWolfson Fund 6.089 6,0 1,71D 11,4581 BoD 2.470 600 4,763 6,151 2,470 12,1501 4,763 15,374 17,2131 Toi 36 039 071 1 614109 35 587 455 39

The Hospltal and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS For the year erKled 31 August 2020 18. Restricted funds Icontlnuedl Hosprtal Buildfflng Funds Gapilal Fund- M'llgAte Extenspon A fund whlch represents the d8praciat8d capital cost ol the Millgal8 Exte￿510n. Capllal Fund- Now Land A lund which repres8nts tho capital value ol the new land purchas8d In 2008 Inotg 111. C4vital Fund- N8w School Buildffng A fund which represents the depr8U8t￿I eapital value of the New 8th001 Building. Capital Fund- Nid)olls Conversion A lurhd which rekyesents th8 d8prècialed capital value ol the Nicholls Conv8rsion. Caprfal Fund- ctsn￿rt Hall A fund which r8we$6nts the deweciated capital valu8 of th8 Coneert Hall. Invro￿?rn8ntS Fund A fund established from the proceeds ol donations from a rnajor anonymous Trust, for use at the discretion ol the F80ff&as for major Improvements. New School D8veloprnent Ftjnd An appe￿ fund for use in furlhering the New School Dovalopment Project. This fvnd is In delieit at 31 August 2020 as expenditurg has been incurred in advance of 8XP8Ctèd income being received. The Feoffoes intend to clear this delicitwith thg ra¢oipl ol relevant donalions and by annua transfers from th8 Hostxtal s unreStr￿ted Fund. Nicholls Building Conversion Fund A fund established for the redevelopment of tha Nicholls Building into residentid acoomrnodation for the Victoria Houso students. This lund is in deficit at 31 August 2020 as eXp￿r￿lture has been incurred in acfvance of expected income being received. The F8offèès intend to clear this deficit in the nèxt two years with thè ieeeipt ol relevant donats.ons by a￿TrUal iranslers from the School's Unrestrioted FurKI. Concert Hgll Furn A lutKJ establish8d lor the Cor￿truction t)f the School's New Concgrt Hall. This furKI is in defi¢il at 31 August 2020 as 8xpenditur6 has been incurred in advan￿ ol expected incorne rèceived. The Feoffees intend to clearthis deficit with the receipt of relevant donatiofts and by annual transfers from the School's Unr8strict8d Fund. Other Funds Instrurnent Fund A fund 8Stablished to give financial assistartce to parents ol students at the School wishing to purchas9 new instruments. ￿￿h011S Fund A fund that Can bè used either to give hardship awwds to parents in financial difficulUgs, or towards the maintenance ol the Foundation's builolngs.

The Hospltal and Library In Manchester funded by Humphrey Chetham Esq and Incorporaled by Klng Charles11 NOTES TO THE FINANCIAL STATEMENTS For tho yoar ended 31 August 2020 18. Restricted funds {continued) Mlsegll&neous RestriGt8d Fund This fund ¢oinprisEs various Mis￿lIaneOUS and small funds. to bg Us￿1 for a variety ol charitable purposes School V8rnon Farley Funcl A fund establishgd in order to tnaka annual prizes lor piantrplaying and sight-rgading. Hazel Smifh Fund A priz8 or bursary awarded annually lo a Lower School student who plays plano. woothind or a string instrument whose larllily 18 in financial need. Ida Csm?11 Fund Prizes awardad annually to double tiass players. Ho$￿1￿1 Priz8 Fund. Kolbert Music Prize FurKI, Academlc Prizes Fund, Musffc Prlzes Fund and compètition Fund Prizes awarded to sttjdants each Speech Day urKler the tems ol a variety of trust funds established by various (tOllQfS. Oavtrd Hathgan Mefftorial Piano Funol A fund established in order to mak8 annual awards to deserving wano sttJd&nts ol Chetham's School. Noil Vinl 8ursaryFund A bursary awarded annually to former students of ChethaTn'S School ag￿ he￿89￿ 18 aixl 25, to hèlp devglop their careers. MilnLP Fund This fund was established to holp students in financial difficulty and tts support the development Df thè School's laciltiie& Bursary Fund This fund was established to hglp students who are in need Of firFarid81 assistance. Ba18son Fsmily Bursary Fund A fund established for the estate ol the L7te Michaol Batgson to provide bur5arie8 for students at the School who are in flnanaal need. Andr8w Lloyd Webber Foundation Bursary Fund A fund establish8d to SUFPOrt St￿ents at Chetham's who requlra linaneAal assistance. Lav8rhulme Twst Bursary Fund A lurKI established to sur¥)ort students al Ch8thatn's who require linanaal assistanc8. Flosotallers"CatTlP"Fund A fund established in order to assist gxtra-tllur￿ aetivities, M811Dr E￿￿Owment andAmy Watson Endow￿8￿1 Funds These funds are to provide b8nefits for the School. 41

The Hospltal and Llbrary in Manchesler funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the yeaT endgd 31 August 2020 18. Restrltted funds {contlnuedl John Shaw Bursary Fund A fund to provide bursary support to students from Lar*cashire or Yorkshire. StollerBursary Fund A fijnd established by thg Sloller Charitable Trust to 5UPPOrt studonts who INe in 01dhatn. Ethel Kerry Bursary Fund A fund 9Stablishod from the estate ol the late Ethel Kery. to provide bursaries for stud8nts who liva in Lancashire, Yorkshire, Cumbria and Scodand. Haréship Fund A fund established lo prOV￿e supwrt to students at the Scfiool who are in linancial nged. Co-op Fur A fund establisw to help the School. Misce113n6ous RgStIFCted Fund This fund comprises miscellaneous small restricted funds for a varlety ol uses. Instnjment Fund A furKI e5tablish8d from a b￿Uest to purchasg1nslruments for the School. Frisnds ol Chetharn s Fund A fut￿ to support the advancement ol education of students at Chetham's by funding projects and lacilibos as the School requires. Ghets in London Fund A fund to support the School. Stoller Hall Fund A fund to supportthe costs ol running ihe Stollgr Hall. 5LYh Anniversary Fund A fund èstablished to support tho work ol the School in a variety of ways. Capit81 Fund- Instruments A fund representing the dopreciated capital value ol instruments pur¢hased uslng the Instrument Fund. Confvcius Glassroom Fund A fU￿d establishèd lor the costs of 8stablishing the Confucius Classroom. Piano SurntF18r School Fund A fund èstablished from the surplus ggnerated by tha running of the annual Plano Summer School. The fund is lo enable the Piano department to facilitate further Summer Schools, to sutvort PT2Th) Students and to purehase instruments. Grsntg And Ofher Income Fund This fund shows grants and othbr restr￿ed income received for Specific tharitable purtx)ses gueh as outreach 8v8nts and conferences, and specthc support for indi4idual strjdents. 42

The Hospltal and Library In Manchester funded by Humphrey Chetham Esq and Incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2020 18. Restricted funds (continued) Llbrary J Paul GetyFund This is a fund lor the conservation of Library matsri￿. Aliscellanwus Restridecl Fund This is a lund ostaNished for mis¢ellaneous restricted donalian5. brary Patrons Fund This fund is for donatlons made by Lbrary Patrons and the income is Iianslerfed each year to th8 uniestricted General Fund. Karl ma￿ Recording Project Fund This is a fund establishgd with a gTant from Ihg Liprnan Millband Trust lor digthsing and tllakiry facsimiles ol the books used by Marx when he visited the Library. Arts and H8ri13gE Fund Thls is a fund establisheLf for ￿ art instalation in the ￿brary. Boolh Gharitles Fund This is a fund ostab115hEd for a project on th& history ol Sallord. Hills Archiv8 Fund This is a fvrFd Established to meet tre exp8nses ol cataloguing the Hills ArchNe Collection. HLF Project Fund Thi8 is a lund established to support the HLF qDplication for the visltor attraction proj8ci. DCMSI Wollson Fund Thbs is a fund establish8d to install blinds in the Library. This fund has been lully expended during the year. 43

The Hospital and Llbrary in Manchester funded by Humphrey Chelham Esq and incorporated by Klng Charles11 NOTES TO THE FINANCIAL STATEMENTS For the year endgd 31 Augusl 2020 19. Unrestrlcted tund5 B81srKe Et I S8Pt8mb8r 2019 Transfws Inv&slmsnl at gaIn￿ 31 Augi ¢lossBs) 2020 In¢omlng T95uuriÈs R8sourc&s Genera1 Fund Designated funds.. Palatine Demolllon 2,￿3,879 49.968 1279.6751 287,283 157 2,511.412 50,000 278,90 279 675 157 2132505 School G&neral Fund Designated funds.. Ch1118r Unil F￿Tr￿ Mlllgat8 Buildif R8furÈ¢shmonl Fund Conludus Classroom Fund Dlning Room R8furtxshmenl Fund Ch8slei Bwst Fund 3,477,513 11,553,628 19,193,694) 11.757,32n 12,0641 4,078,058 18,0(A) 6,000 24,000 1,000,000 180,0851 919,915 17201 1,430 50.000 1 054412 725 570 50,000 1054412 6,126 383 4,494,8D3 11553 628 9194414 Llbrary Goner¥ Fund D88ignat8d furKIs: Library Guld8s Fund 537,281 278 1&3,749 278 1186.7791 ¥8,456 1207.9941 319,713 537 003 207 994 319713 7 OS8 578 11757 623 9.e￿O,868 364 831 8,578 601

The Hospital and Llbrary In Manchester funded by Humphrey Ch*ham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the y88r andèd 31 August 2020 19. Unrestricled lunds Icontlnued} Hospital Palatine D8rnolthDn Fund A fund gstabli5hEd lor the costs of demolishing thé Palatine Building. This fund is ITr deficit at 31 August 2D20 as 8XP8nditure has been incurred in advan¢9 of 8xpected income being receiv8d. The Feoflegs intend to clear this Fund's dgfioit with tha reeaipt ol relevant donations and by annual transfers from the Hospital's Unrestricted Fund. School Chiller Unit Fund A fund establishgd tr) provlde resoLircgs tor replacing th8 Chiller Unit in the New Sthool Building at the er¥J DI lis useful life. MillgalF Buil(ling R61urbishmentFun A fund established for tbg refurbi5hMent of the boys, boardillg accommodation and improv8merEls to olhei areas In the Millgale Building. Confwius Cks5rc￿M Fund A fund established for the ¢r88lon ol a new Confucius Classroorn. Th8 fund balance has been transferred to a Restricted Fund. Llbrary brary Guths Fund A fund to 8(Lount for the purchase and sala ol knbrary Gu￿8 books. This fvnd is fully èxpended. 20. Penslons arranggments Thg School partlclpAtes in the Teachers, Pension Scheme I'lhe TPS'I lor fis teaching staff. The pènsion Charge lor the year includ88 Qontiibutions payable to the TPS of £770,51212019.' £511.2971. The TPS is an unfvmled mulli-ptnployer defined benefits pells￿￿ ￿tt￿me ooverned by The Teachors, Pension Regulations 2010 las amended) and Thg Toache15' Pension Scheme Regulations 2014 las amandedl. Members contribLth on a "pay a5 you go" basis wth Contri￿li0n8 from members and Ihg emploiyer boing credited to the Exohequer. F18tiremenl other pension benefits are p￿d by public funds provided by Parliament. Th8 8mployèr contribution rate is S8t by the Secretary of Stata following scheme valuetlons undertaken by the Governmont Actuary's Dèparbnent. The most reL¥nt actua￿￿ valuation ol the TPS was prapar8d as at 31 March 2016 and the Valuation Report, whlch was published in March 2019, cr)nTh'rmed that Ihe employer contribution rato for th8 TPS would increase tforn 16.4°1Tr to 23.6¢A fro￿ 1 September 2019. Employ8rs ar8 yjso required to pay a schgrng adrttinistratlon levy of 0.08°A giwng a total empbyer contrlbution rate of 23.68°k. The 81 March 2016 Valuation R8POrt was prèpared in accordanc8 witti the bgn8fits Set out in the scheme regulations and utKl8r the approach specified in tho Directions, as they applied at 5 March 2019. However. The assumptions woro ¢onsid8red and set by the Department for Education prior to the ruling in the 'McGIDudlS8rgeant ease,. This oase has rgquiifd tre courts to consider cases regarding the implementation of the 2015 reforms lo Publio Semcè Pènsions induding the Teachers, PensK)llS.

The Hospltal and Library in Manchester funded by Humphrey Chetham Esq and incorporated by Klng Charles 11 NOTES TO THE FINANCIAL STATEME For the year ended 31 August 2020 20. Pensions arrangements {contlnuedl On 27 June 2019 the ￿p¥￿t￿8 Court denied the Governm8nt pèrmission to appeal the Cc>urt tsf App6al's judgemgnl and trans￿Onal provision inlrodu¢èd to the ielormed ponsion sch8rn8 in 2015 gave rise to unlawful age discrimination. The Government is respécting the Court's deusion and has said it will engagg lully with the Employment Tribunal as well as employer and member r8prEsentatives to agree how th& discrimination will b9 retnedied. A consultation was launched by the Governmgflt on 16 July 2020, and closed to responses on 11 October 2020. As a result ol the consultation, the government annouTh￿d on 4 February 2021 il intends lo proceed with a d8fèrred Choi￿ underpin, under which members wll be ablo to choose either legacy or reformed schetne benelils in r8sp8Ct of their service during th8 period be￿e￿N 1 April 2015 and 31 March 2022, at th8 point they become payable. Th8 TPS is subject to a cost cap rnechanism which was in placa to protect taxpayors against unforeseen changes in s¢hetne e05ts. The Chief Secretary to tha Treasury. having in 2018 annoLJnced thatth8rg woukl b8 a review ol this cost cap tnethanistn, In January 2019 announ(*d a pause to the cost Cap mechanism following the Court of Appeal s ruling in thg McCloudlSErgeanl case and unti1 th8re i% rtainty aboutthe value ol pensions to etnployees from April 2015 onwards. The pause was lifted in Juty 2020 and the government is preparing to Complete the cost control 8lotnent ol tho 2016 valuations, which is expected to b8 completed in 2021. In vigw of the above ruliws and decisions th8 assumptions used in the 31 March 2016 Actuarial Valuation may b8com6 inappropriate. In Ihis sconario, a valuation prepared in accoTdance with revis￿ benefits and suitably revised #ssumptions W￿ld yigld differ9Tr1 Tesults than those CDntain8d in the Actuarial Valuafjon. Llntil the corFsuliation and the cost cap tnechanistn review are complet8d it is not possible lo conclude On any linancial impact or fvtur8 changes to the Contri￿tion rate of the TPS. Accordingly, rTro provision lor aTTy addltional past benefit pension costs is includ8d in these financial staloments. In addition, a small number ol gmploye9s ar8 tnernbBr ol the Great8r Man¢h8sler Pension Fund I"GMPF"l. The GMPF is a multi-èmployer final salary delin8d b9nefit scherne and the ass8ts of the School ar8 pool￿ with similar institutions for actuarial valuation purposes. Accordingly, under FFtS 102 th$ Scheme is account for as a d8fin8d contribution scheme. Thg ponsion cost is assessed ev8rythraè yèars in accordance with thg advice ol an independent qualrfied actuary. The lat8sI actuarial valuation ol thg sch9tno was at 31 March 2019 when the market value ol the assets of thp Scheme was £23,844 million, being 102/0 of ffl8mbers' accrued benafi'ts. The pension contributions mad8 to the S¢hern8 forth8 year ended 31 August 2020 were £15,25312019- £11,174). The employeg wntribLition rate varied betwegn 5.5Ya and 6.8?/& depending upon actual pay evels. Thg gmtADyer contribution rate was 24.40/. from September 2019 to Maich 2020 and then 24.7°k. In addition to tho above. the contributions to a rnDn8y purehase schem8 arrounted to £106,52312019- £97,372).

The Hospllal and Library In Manchester funded by Humphrey Chetham Esq and in¢orporaied by Klng Charles 11 NOTES TO THE FINANCIAL STATEMENTS For the year gndgd 31 August 2020 21. Operatlng lease ￿MM￿mentS The School has minimurn lease payments und8r Kjn-cancellable opgrating leases as follows.. Equipment 2Q19 Within one year Between two and five years Aftar live years 26,482 27,947 24,223 44,118 22. Flnanclal Instruments 2020 2019 £000 £000 Finan&al assets measured at amorti5ed cost181 Financial assets measurgd al fair value Ibl Financial liabilities tneasured at an￿rtised cost Icl 6,841 11.117 4,188 13,0661 15,2941 Ngt financSal assets measured at amortisod cost 12.081 10,011 lal Financlal assets include Cash, tradg and lee debtors. stall loans, other débtors attru8d incorne and atnounls due trom subsidiaries Ibl Financial assets held at lair value include ass8ts held as invgslments Icl Financial liabilities indude deposits, 1088 in advanc6, trade creditors, and other cr9d￿r$ Impairment Ios68s tharged to ftnancial assets measured al amorti$ad cost In the year amounted to £nil12019.. £nill. 23. Relaled party transa¢tlons Thera are no related party ITans8etions that need to be disclosed in the financial slalements. 47

The Hospital and Llbrary in Manchester lunded by Humphrey Chetham Esq and incorporaled by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS For the year ?rhd¢d 31 August 2020 24. Statement of financlal actl¥tti8s- comparatlve fSgure8 by fund Notss Howal Lthry Funds 2019 In￿￿9 Irom: ChwllBblB actrvlth.. School l¢es Arrillary Iradlnu Other Iradlngadlvlll¥&" Aclivilio$ IDr ge￿raIn9 lunLts Investn￿RIS.. IrweBlmenl income 8,982,332 401,n5 ,982.332 414.842 347 12,7 87.W3 481>,703 562.820 19,428 54.577 98,9 172,905 Beques15 anddDnaUoNs Gr8nls rec@iw8d 28,296 47&845 42, 548,150 Tolal Incomlmg rèÈou*e88 135.014 10.375,192 168.842 10,679,D49 EXp￿dI￿[re on- Ralslng fvnd¥'. Fundraising Publioty CDnfereficè and18&1ty hlrèc08 Finanow c051s nYEslment managefflpnl C(6ts 84,6 110.372 109.037 Y6.032 4.299 1gs,062 109,037 433,247 154,387 86,657 Iso,0 1.0 558 5,572 899.278 Charii•NgxlfvlllgS.' Tèa¢hlw ¢o$ts-ac&tem Tèachiw eosts-music WeKare Premlsgs S¢hdar8hlpg and ￿T93n85 Grants. awards brary Yunnin9 cos15 Svpport Governance c051s 2,014.186 3,g06,897 1.324.475 1.911729 188.786 8,834 2,014.186 5,9)6,897 1,324,475 3,041,728 188.786 1.128.997 2,400 2t2,$64 222,864 96.463 11579 Bl528 1 976 1,466.433 5 43&435 10,009.126 10806631 11.705.909 Totsl Ye8ource8 expendgd 230.3SO Netlgxppndttuvoyln¢o St6,(￿6 161,507) 11,026,860) Tran5ferbBlwe8n lunds 1827.QOOI 44.0 Gain$lll￿egI on inv8gtsngnt assets.. ￿e￿L$ett Unreali%d 50251 120,&531 37,345 138,0461 In,902 P447281 261.498 1803.72 N•t mov•n￿rIn funds 1719,1211 1261,&351 IE8,3331 I1,￿,059? Fund ￿8￿￿￿$ * I Septemb2r2018 33￿863 10275219 2.878897 46998 079 Fund balon¢es at 31 Aygy$t 2018 33,124,842 10,013,584 2 790,564 45,928,990