THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 REPORT AND FINANCIAL STATEMENTS For the year ended 31 August 2023 THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES Forthe year ended 31 August 2023 Contents Page Annual Report of the Feoffees Independent Auditors. Report 15 Statement of Financial Activities 18 Balance Sheet 19 Cash Flow Statement 20 Notes lo the Cash Flow Statement 21 Notes lo the Financial Statements 22 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 ended 31 August 2023 The Feoffees and School Governing Body present their annua5 report for the year ended 31 August 2023 under the Charitie5 Act 2011, together with the audited financial statements for the year and confirm that the laller comply with the requirements of the Act, the Charity Commission Scheme dated 27 May 1952 and amended Scheme dated 22 October 1969 and the Charities SORP 2015. Reference and administrative details The Feoffees who serv&J during the year and up to the dale of signing the accounts were as follow5.. P.A. Lee, Esq. H. Ross, Esq. Mrs. V. Torevell M. Edge, Esq The Rt. Hon. The Earf of Derby Mrs V. Goldstone The Very Reverend R. Govender DT. D. Hill J Langridge. Esq N. Maclnnes, Esq. Prof. L. Merrick T. Newns, Esq. R. Websdale (Chairman} Ivice Chairman) (Treasurer) THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES Forthe year ended 31 August 2023 School Governing Body Under the lerms of the Charity Commission Scheme, there is a School Goveming Body managing the School of the Foundation. which, when complete, comprises nineteen members. Those who served during the year and up to the dale of signing the accounts were as follows: M. Edge, Esq. Mrs. V. Torevell Ms. S. Barnes Mrs. C. Baxendale P￿f. B. Brennan Councillor J. Davies Mrs. E. Halslead K. Jaquiss, Esq. Prof. L. Merrrck L. Pratt, Esq. H, Ross. Esq. Ms. K. Russell N. Shepherd, Esq. L. Stephens, Esq. Canon M. Wall Dr. S. Zhi M. Corran (Chairl (Treasurer) IAppointed by the School Governing Bodyl (Nominated by Manchester City Councill (Appointed by the School Governing Body) (Nominated by the Dean and Chapter of Manchester Cathedral) Library Committee Those who served on the Library Committee durlng the year and up lo the date of signing the accounts were a$ follows.. Mrs. V. Goldstone N. Barker, Esq. Professor J. Bergin N. Brooks-sykes. Esq. J Hodgson, Esq. N. Maclnnes, Esq. Dr. R. Oates Mrs. C. Paynlon Prolessor M. Schmidl {Chair} THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2023 Officers Joinl Principal Joint Principal Dire¢lor of Finance The Librarian The Clerk lo the Feoffees T. Redmond, Esq. Ms. N. Smith Mr. A. Ross J. Simpson J. Aldersley. Esq. Principal Office Address Chelham's Hospital School and Library Long Millgate Manchester M3 1SB Advlsers Bank91 National Westminster Bank ptc 182 Deansgate Manchester M3 3LY Solicitors Butcher & Ba¥low LLP 3 Royal Mews Gadbrook Park Northwich Cheshire CW9 7UD Veale Wasbrough Vizards LLP Narrow Quay House Narrow Quay Bristol BS14QA Auditors of the Charitable Foundation Crowe U K. LLP The Lexicon Mount Slreet Manchester M2 5NT Investment PJlanagers Rathbone Brothers PLC Port of Liverpool Building Pier Head Liverpool L3 1NW THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2023 Insurance Brok9rs Marsh Comme￿Ial Kabel House 15 Quay Street Manchester M3 3HN THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2023 Structurei governance and managemènt Govemlng document and $trueture The lull name of this charitable foLFndation is "The Hospital and Library in Manchester founded by Humphrey Chelham, Esq. and Incorporated by King Chailes Il. {Registered Charity Number 526702}. The Foundation, including the S¢hool, is regulated by a Charity Commissiori Scheme dated 27 May 1952, and amended by a Scheme dated 22 October 1969. Chetham's Hospital, Chetham's School of Music and Chetham'5 Library are separate charities bul are registered under one Charity Number, following a Uniting Direclton issued by ihe Charities Commission in 2004 for registration and accounting purposes. The Trustees of the Hospital and Library charities, who are known as the Feoffees. are a Body Corporate. pursuant to Lellers Patent of King Charles11, dated 10 November 1665. Chetham's Hall Limited is a subsidiary undertaking that is a wholly owned 5ubsldlary of Chetham's Hospital. Chetham's Trading Limited is a subsidiary undertakin9 that is a wholly owned subsidiary of Chetham's Sch(x)l of Music. Governing bodies The Feoffees are the governing body of the Hospital and Library charities. The School Governing Body of Chelham's School of Musn is the governing body of the School. The Library Committee acts as the management committee of the Library charity and approval for that Committee's recommendations is given by the Feoffee5. Retrultment and tralnlng Cheth8m'8 Hospital Feoffees are appointed under the lerms of the Will of Humphrey Chelham. The Chairman. Vice Chairman and Treasurer are elected annually. The term of office is 5 years and Feoffees may be re-elected. New Feoffees are chosen from a wide variety of academic and busine$5 backgrounds to ensure that the essential level of knowledge and experience is maintained and they are inducted into the working of the Hospital on appointment. Continuing training for existing Feoffees is a￿anged on an on-going basis as ne￿$sary. Chotham's School of Muslc The appointment of members of the School Governing Body is confirmed by the Feoffees except where otherwise staled. The tetm of oflice is three years. All members may be re-elected. New Governing Body members are chosen from a wide variety of academic. musical and business backgrounds and are inducted into the workings of the School by the Joint Principals. Safer re¢witmenl procedures are followed for all SchcM)l Governors including DBS checks. Continuing training for existing members is organised on an on-going basis as r¢e￿$s￿ry. At each meeting of Ihe Governing Body the opportunity is taken to update members on various aspects of School life and current educational issues. The School's Designated Safeguarding Lead allended the September 2021 meeting to answer questions 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 the year ended 31 August 2023 Chetham's knbrary New members of the Library Committee are selected by the Library Committee and their appointments are confi'rmed by the Feoffees. Members seNe for a three year peaod with the opportunity for re-election al the end ofthal lime if appfopfi21e. New members are chosen from a wide variety of academic and business backgrounds and are inducted into the workings of the Library by Chelham's Librarian who also arranges for ongoing training for existing members as necessary. Organisational management The Feoffees are legally responsible for the over811 management and control of Chetham's Hospital and of Chetham's Library. The Feoffees meet formally at least twice a year. The Investment Sub£ommillee oversees the investment portfolio and works with the Investment Managers. The day lo day runnirÈg of Chetham's Hospital is delegated lo the Dire¢lor of Finance for financial and buildings matters. The day lo day running of Chelham's Library is defegated to the Library Committee and to the Librarian. The School Governing Body is legally responsible for the overall management and control of the School. The Governing Body meets formally al least three times a year. There are three sub-committees of Ihe Governing Body, the Resources Committee, the Safeguarding Committee, and the International Opportunities Committee. In addition, a governor is on the School's Health and Safety Committee. The day to day njnning of the School is delegated to the hvo Joint Principals. The Remuneration Sub-commillee sets the remuneration packages for the Jtsilll Principals. The remuneration package of the Librarian is sel by the Feoffees. Remuneration packages are informally benchmarked against comparable organisations, pay structures. Principal risks and uncertainties The Feoffees and the School Governing Body are responsible for the management of the risks faced by the Hospital, School and Librtry, Detailed considerations of risk aTe delegated lo the Joint Principals, Librarian and Director of Finance and to the Resou￿$ Committee which idenliftes and assesses risks and establishes controls throughout the year. The Feoffees deem the major risk faced by the Hospitsl to be the risk that fundraising achievements are insufFicienl to provide the necessary resources to propedy maintain the buildings and osource the activities to which the organisation has committed. The Development Department is monitored on an on-going basis directly by the Feoffees and ils reports are scrulinized closely at their regular meetings. The School Governing Body maintalns a comprehensive risk register. Key risks include the impact of a change in the MusiG and Dance Scheme whlch Is the major source of ongoing fee income for the School, reputational damage, safeguarding and he81th and safely risks. All of these risks are mitigated by careful planning, thorough checks and reviews being in place and regular monitoring by senior staff and Governors. The Feoffees deem the major risk to the Llbrary is its financial sustainability. Vvhilst the Hospital charity is in a position lo finan¢ially support the Library on an ongoing basis. the Library staff, Feoffees and Library Committee members are committed to sourcing altemalive financial resources to provide a sustainable future for the Library. THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2023 The key controL8 used by the Foundation include.. formal agendas for the Committee meetings.. detailed terms of reference for all Committees., comprehensive budgeling and management accounting. estsblished organisalional structure and lines ol reporting-. formal wrillen FK)licies', clear aulhorisalion and approval levels., and vetting procedures as required by law for the protection of the vulnerable. Through the risk management processes established for the Foundation the Feoffees and S¢hool Governors are satisfi'ed that the major risks have been adequately managed. 11 is recognised that systems can only provide reasonable, bul not absolute. assurance that major risks have been adequately managed. Objects, aims, objectives and activities Charitable objects The Feoffees are required, under the terms of the Charity Commission Scheme, to apply the annual income of the Hospital to the maintenance and improvement of the School, Library and Hospital premises, including PTovisions for extension and improvement of those premises and purchase of additional land and in the payment of grants and allow2nces and the award, intèr alia, of scholarships, maintenance allowances and other financial assistance. The object of the School is to give a liberal education with due regard to the theory and practice ol musiG, The object of the Library is lo provide. under the Will of Humphrey Chelham, °A Library wilhin the Town of Manchester, for the use of scholars. and others well affected, to resort unto., Public benefit aims and intended impact The Public Benefit aims of the Hospital are lo provide the optimum resources to enable Chetham's Library and Chelham's School of Music to excel In their respectDie fields of expertise and ILI facilitate wide public access lo the services offered by both entities. The Feoffees and School Governors have had regard lo the Charity Commissions guidance on PubliG Benefit. The Public Benefit aims of Ihe School are as follows.. To educate musically gifted children between the ages of 8 and 18 whatever their social, racial and cukural ba¢kground and financial circumstances; To provide as bwoad an aGadetnic ¢urri¢ulum as 1$ possib￿ within a specialist school.. and To develop the whole person, furthering the spiritual, moral, social and cultural development of each sludenl. 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 ended 31 August 2023 The Public Benefit aims of the Library are to maintain the provisions of the Humphrey Chetham Will. and to make improvements to the Library whenever possible. It aims lo advance the education of the public by the provision of opportunits'es to study histoiiGal and contemporary literature, spe¢ialising in the history of the North Wesl of England. ObjectiV8s for the year The overarching objective has been to ensure that the charities and the seNlces provided to beneficiaries are maintained at the highest possible level, The major objective for the Hospital this year has been lo conknnue to fvlfill its slated aims of supportlng the Library and School. The main objectives of the School were as follows.. To ensure that the School's Safeguaiding Policy and practices are exemplary and fvlfill all regulatory and statutory requirements. To continue lo achieve consistently high results in musical and academic fields. Working with the Feoffees to furtherthe site development in the Millgate House an(J Long Millgate external area. To continue to provide opportunities to the public via the Stoller Hall. the Creative Engagement Programme and Music Courses widening access lo the School. To increase the amount of Bursary funding for overseas and horne students lo enable more students lo be supported financially. £634,36412022.. £599,967} was provided in Bursary support this year. The major objective for the Library this year has trEen lo continue to fulfill its slated aims of the provision of a Library, Fundraising has been priori115ed to help to ensure the Library's activities are sustainable. Strategl¢s to achievg the year's objectlves The strategies used to achieve the Hospital's objective this year include continuing lo raise the necessary funding to ¢over the fur¢ding gaps incurred during the on-going Sile Development Project. The School's strategies included.. The School's Safeguarding Committee monitors safeguarding matters al each of its meetings. The Safeguarding Pc>licy is updated and reviewed al least annually by the School and Governors_ Continuing to employ and invest in the best FK)ssible staff in all departments in the School. Providin9 Opportunities for Chetham's students and the public to participate In high quality events including maslerclasses, recitals, or¢hestral concerts and numefOUS specialist teacher and student days throughout the year. Continuing work on the refurbishment of the Millgale boarding accommodation in the Millgale Building. The first phase of the construction Work was completed in Summer 2019 and the students moved into the new bedrooms in September 2019. Phase 2 has completed and was opened in September 2023. This part of the Site Development Project is expected lo continue for a number of years, Major works have been completed on the Long Millgale pavement areas. Preparing the way for the refurbishment of the ￿lteleY Hall Identifying and working with potential providers of Bursary funding. THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES11 ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2023 The strategies used by the Library to aGhieve this yeavs objectives included reviewing the securing of the financial viability of the Library by the submission of numerous funding applications lo a variety of trusts an(5 foundations, continuing and expanding on the slTong links with other academic institutions and Man¢he5ter Cathedral and targeted expansion of the holding of relevant books and other materials. Increased promotion as a visitor attraction has seen an increase in visitors to the library. Principal activities of the yoar The principal activities of the Hospital were the provision of premises to house the S¢hool and Library and associated aclivilies, together Wlth the awarding of giants lo students of the School. The principal activity of the School was the Pfovision of a musical and academic education lo young people belMeen the ages of 8 and 18. The School also provides an extensive Creative Engagement programme to encourage wider community ac¢os5 to the excellent teaching resources of the School. The PFincipal activity of the LibTary was the provision of a library and associated activities. Foundation bulldings Under the VMII ol Humphrey Chetham who died in 1653, College House was purchased for the ft)undation of a hospital (school) and a library. The accounts of Ihe Foundation do not incorporate any value of College House. The value of land and buildings shown in the linancial slalemen15 15 the purchase price of the Millgate Building, and the construction costs of New College House, the Millgate extension, the New School Building, the conversion sls for the Nicholls Building re-development, the construction costs of the Stoller Hall and of the redevelopment of the boys, boarding accommodallon in the Millgale Building, all net of depreciation where relevant. together with the purchase price of the parcel of land at Walkers Croft. The buildings are insured for £140 million on a rebuilding basis. The Hospital is responsible lor the extemal repair and malntenance of the Foundation buildings, and the costs are charged lo ils annual accounts as incurred. The School and Library pay for inlemal repairs and mainlenanGe within their own respective accounts. Grant maklng policy The Feoffees make awards on the basis of an individual's financial position. Any particular Conditions imposed by donors are taken into account when making awards. Any grant from the Instrument Fund is given lo parents in support of their requests for assistance in buying instruments for their children. The parents usually have lo contribute lo any purchase. This year, the value of awards made by the Hospital to the School's students was £5,05012022 - £5,000). Around 800k of the students at Chetham's are eligible for means-tested support through the Music and Dance Aided Pupil Scheme, funded by the Department for Education IDE}. This Scheme ensures that familkes are onty asked lo contribute towards the fees of the School at a level that they can afford. FOT a number of reasons, usually because the Scheme is primarity for UK residents, a small number of students are not eligible for fsnancial support Ihiough the DfE scheme. A significant part of the School's activities is the provision of Bursaries to these stT6 and trading ¢ost$ FiTranong costs Investment managemenl ￿$t8 10,400 138.321 118,083 50D.973 3,012 30.3(A) 148.721 118.083 505,33D 113,120 48,333 116.242 163.519 409.095 122.611 49,255 4,J57 110.108 4,778 13,255 790 689 933.587 Charltgble acU¥ltte$.' T8a¢hing ¢ost5- gGademic Tèaching ¢ost$- music Walfare Prom￿8$ Scholarships and Bursari88 Grant5. awards and prYz&s Library running costs Support and Governance costs 2.141,324 4,241,419 1.784,120 2,441,979 2.141,324 4.241,419 1,7B4,120 3.513,791 634,364 22,542 226,835 118202 12.682 597 13.616,184 2,015.111 4.013.322 1,648,945 3.058.804 599.967 15,403 202.179 143.201 11696932 12.557,654 1.D71.812 5,050 17,492 226,835 1.579 228,414 241,669 93,e62 1 099.823 11 354.56Q 1,229,266 12,145,249 Total r8source3 expended Net Incomellexpenditur81 11.192,9921 191,2411 128,9081 11,313.1411 705,158 Transfor between funds GalnsllLoss8sI on Inv88trrtent assets Reali5ed Unrealised 10 627,IX)O 1627,orKsi ie,3651 11,1871 137.9511 1121,3381 128,6641 167,6441 172,9801 1190.1691 185,4781 1839.4591 Net movemont In funds 1573,5441 1877,5301 1125,2161 11,$76,2901 1219,7791 Fund tyalano$ at 1 Septemb8F 2(r22 31758 804 13 733 591 2.971267 48 463 862 48,683 441 Fund balances at 31 August 2023 31 185.260 12 858 081 2.846.051 46 887.372 48,463,662 18 The Hospital and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles11 BALANCE SHEET Forthe year ended 31 August 2023 Note 2023 2022 Fixed assets Heritage assets Tangible fixed assets Investments 115,000 33,403.593 9 978 326 115.OOQ 33,597.533 10248 974 12 43496919 43 961 $07 cu￿nt assets Deblors fees other debtors and prepaytnen15 Cash at bank and in hand 366,242 469,908 7 362 592 450,235 1,341,631 7 540 395 13 8,198,742 9,332.261 creditors-. amounts falling due within one year 14 3 347 469 3 202 837 Net current assets 485127 6 129424 Total 35sets less currènt Ilabllltles 48,348,192 50.090,931 Creditors.. amounts falling due after more ihan one year 15 1460 820 1627 269 rotal netassats 16 Endowment funds Restricted funds Unrestricted funds t7 18 19 3,232.461 33,392,729 10262 182 3,294,526 34,221,044 10948 092 Total funds Hospital funds School funds Library funds 31.185,2fj0 12,856.061 2 846 051 31,758.804 13.733,591 rotal funds 16 The financial slalements were approved and authorised for issue by the Feoffees on 29th July and signed on their behalf by.. 2024 I'_oo- P. A. Lee, Esq. Chair of Feoffees M. Edge, Esq Chair of School Governing Body Mrs. V. Torevell Hon. Treasurer 19 The Hospital and Library in Manchester funded by Humphrey Chetham Esq and Incorporated by King Charles11 CASH FLOW STATEMENT Forthe year ended 31 August 2023 Cash Ilow slalemf>nt notes 2023 2022 Ngt cash Inflow/{oufflowJ Irom operations Net Ca6h pmvidad by/{u$8d by) Dperaling activiti6s 724,470 809.511 Cash flows from inv8sting aotivities Investment income Payments to purchasè buildings and other fixed assets Payments lo a¢quir8 Investments, including cash awaiting investment Receipts from sales of fixed asset invesfjnents Increase in eash held by inve51rllent advisors 299,683 262,728 1939,9361 1804,5531 (2.403,9551 12,132.0361 2.220,962 2,312,531 190,492 1131.192) Net cash prOvId￿ byllu$ed inl investing activlt5es 632 754 492 522 Cash flow from fin8ncing 8¢tivitles Bank loan and intèrest payab Bank loan repayments {113.120) 1122,6111 Net cash used in fin8n¢lng actlvitles 269 901 Changè In cash and eash equivalents In the r&pO￿ngp0T10d Cash and cash equiv8l&nt atthe beginning of the pe170d Cash 8nd cash equivalent atthg erKI of the period 1177,803) 7 540 395 47,088 7 493 307 20 The Hospital and Library in Manchestsr funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE CASH FLOW STATEMENT Foythe year ended 31 August 2023 Reconclllatlon of net expendlture to net cash flow from operatlng actlvltles 2023 2022 Nel inwmingl{outgoingl resources Depreciation Investment income Bank and loan interest payable IlncreasellDecrease in debtors IncreasellDecreasel in creditors 11,313,141) 1.133,876 {299,6831 113,120 955,716 134,582 705.158 1,084.067 (262.7281 122,611 (979.3071 139.710 Net cash inflowlloufflow} from operating activities 724,470 809,511 Analysls of cash and cash equivalent 2023 2022 Cash at bank and in hand Cash on dep051t 5,818,050 1,544,542 6.009.555 1,530,840 7.362,592 7,540,395 Reconclllation of not debt Atl September 2022 A13t August 2023 Cashflow Cash at bank and in hand Bank loan due in les5 than one year Bank loan due in greater than one year 7.540,395 11 S3,3041 11,627,269) 1177,8031 7.362.592 110.0501 {163,354} 166.449 11.460,820) 5,759,822 121,4041 5.738,418 21 The Hospital and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023 Statement of accounting policies Basis of preparation of accounts The financial statements have been prepafed in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS102}, the Charities Act 2011 and the Statement of Recommended Practice applicable lo charities preparing their accounts in accoidance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021- effective l January 2019. The Foundation has taken advantage of the exemption available lo a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement with the consolidated financial statements. The functional currency of the Foundation is considered to be GBP beGause that is the currency of the primary economic environment in which the Fo4Jndalion operates. The accounts aTe diawn up on the historical cost basis of a¢¢ounting, as modified by the revaluation of investment properties and other investments. The Foundation is a PL¢blic Benefi't Entity registered as a charity in England and Wales. It is registered as a charity on the Charity Commission website (charity number: 5267021. No material uncertaintie5 that may cast significant doubl about the ability of the Foundation lo continue as a going concem have been identified by the Feoffees or School Governing Body. The Foundation has a Fundraising Strategy in place lo cor¢linue to raise the necessary funds for the Site DeveloprTrent Project with over £43.7 million having been raised lo dale. The continualion of the upgrading of the boarding accommodation in the Millgale Building is the next priority, as well as the opening of the medieval buildings as part of the Visitor Attraction Project. A significant proportion of fre income for Ihe School is receivable from the Department for Education IDfE} under the Music and Dance Aided Pupil Scheme IMDS}- In the current year £7.146,056 was receivable12022 £7,288,080). The DfE have provided assurances to the School that they foresee the MDS Scheme being continued in its Gurrent form for the foreseeable future. 22 The Hospital and Library in Manchestsr funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 August 2023 ststement of accounting policies (continued) Uniting dlrection A Uniting Direction was issued by the Charities Commission on 25 June 2004. This links the Chelham's Hospital, School and Library charitable strands for Ihe putposes of ￿gistratIon and accounting under the Charities Act 1993. The Charity Commission has agreed lo the adapted format of the Statement of Financial Activities wherein funds are calegorised by component charitable strand rather than by type. Chelham's Hall Limited is a subsidiary undertaking that is a wholly owned subsidiary of the Hospital. Chelham's TTading Limited is a subsidiary undertaking that is a wholty owned subsidiary of the School. The results of both subsidiar￿$ are included in the accounts of the relevant charity. Fees and 5imilarincomg Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are Stat￿ after deducting Bur8aries gTanled by the School, but include contribution5 received from ReStr￿ted Funds towards fees. Donations and bequests Donations and bequests received for the general purpose$ of Ihe Foundation are Grediled lo unrestricted funds. Donations and bequests subject to specrfic wishes of the benefactors ale Gredited to restricted funds. or to endowment funds where the amount is required lo be hel¢J as permanent Capital. Donations and beque51s are accounted for as and when enlillemenl arises. the amount can be reliabty qualified and the economic benefit to the school is considered probable. Invostment and covenant income Credit is taken for investment and covenant income, including related taxation, on an accruals basis. The income frtsm COIF Accumulation units IS SUtomalicalEy reinvested and this income is not di501osed as such in the accounts because there is a corresponding Increase in the valuation of the origin31 subscribed unsts. Resources expended Expenditure is accrLted as soon as a liability is considered probable, discounted lo present value foT longer- term liabilities. Overheads and other costs not directly allribulable to particulaf functional activity categories are apportioned over the relevant categories on the basis of management estimates of the proportions of individuals, time allributable lo that activity in the year. The irrecoverable element of VAT is included with the item of exp8nse to which il relates. Governance costs comprise the costs of running the charity. including strategic planning lor its future development, also external audit, any legal advice for the Feoffees and School and Library Committees. and all costs of complying with constitutional and statutory requirements, such as the costs of meetings Df the Feoffees, the School Governing Body and the Library Committee and ol preparing statutory accoun15 and satisfying public accountability. Tangible fixed assets and depreciation The Foundation's Collections and Management Plan, available from Chetham's Librarian upon request, details the Foundation's po5ny lor the acquisition, preserv8tion, man8gement and disposal of its heritage assets. College House and the Collections are deemed lo have indeterminate lives and therefore the Feoffees do not consider it appropriate to charge depreciation. 23 The Hospital and Library in Manchester funded by Humphrey Chetham Esq and tncorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023 Statement of accounting policies (continued) College House The site Df Chetham's, on a sandstone outcrop at the confluence of the Rivers ITwell and Irk. has been of strategic importance and occupied since Roman times. College House, in 1421. was the largest building in the medieval town of Manchester. The buildings have been used to house the School since 1653 and are Grade 1 listed. The Feoffees consider that, owing lo the incomparable nature of the buildings, conventional valuation approaches lack sufficient reliability and even if valuations could be obtained, the costs of doing so would be onerous compared with the additional benefits derived by the Foundation and users of the accounts. As a result. no value is reported for this asset in the Balance Sheet. Thg Llbrary's Collections The Library's Collections were started in 1655. From illuminated manuscripts made for kings and queens to the minutiae of personal life- diaries. letters, account books- the Library has a wealth of special items and collections. Chetham's holds over forty medieval manuscripts. including the Ihirleenlh century Flores Historiamm of Matthew Paris_ The ColleGlions are mainly concerned with the history of the North Wesl of England and include the first ever Census of Manchester compiled in 1773-74. There are well over 120,000 printed ilem5, over half of which were published before 1850. It is considered that obtaining valuation5 for the vast majority of the Collections would involve disproportionate cost due lo the size and diversity of the Items and $0 these assets are therefore not recognised in the Balance Sheet. Significant acquisitions from September 2009 onwards will be reported at cost, where the item is purchased, or if donated, at the current value if it is readily discernable, for example by using a probate value. The Feoffees will very occasionally approve the disposal of items of the Collections, for example when an item is of doubtful provenance or is a duplicate of an item already in a Collection. Where items that are not recognised as fi'xed assets are disposed of, the proceeds are reported in the Statement of Financial Activities. Disposal proceeds are also disclosed separately in the notes to the accounts. The Collections are deemed to have indefinite lives and therefore no depreciation is charged. Presorvadon costs Expenditure Wh￿h, in the Feoffees. view, is required to presetve or cleady prevent further deterioration of College House or individual Collection items is recognised in the Slalemenl of Financial Activities when il is incurred. Oth&rassets The cost of freehold bulldings which are not classed as heritage assets is written off by annual installments over their expected ￿SefUl lives as follow5.. 24 The Hospital 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 2023 1. Statement of accounting policies (continued) Freehold buildings.. 40 - 60 years The cost of the land acquired in 21108 is not written off but is kept in the accounts as a capital itom matched by a restrictèd Capital Fund as its purchase was funded by a grant from the NWDA for that specific purpose. Expenditure on instruments. fu¥niture and equipment etc. C051ing less than £10,000 15 written off as an expense in the year incurred. Depreciation is provided on the Cost of tangible fixed assets, to write them down in equal inslalmenls lo their estimated residual values based current maiket pr￿eS over their expected useful lives as follows.. Furniture. fjttings and equipment-. Inslrumenls.. 5 year5 3 year5 Grants recewed towards capital expenditure are credited to the appropriate restricted fund upon entitlement thereto,. any depreciation of the grant-funded proportion ot such fixed assets expendilvre Is charged to the related restri¢ted fund. Invgstnignts Investments are valued in the balance sheet at their mid-market value at the balance sheet date. Investment management fees are accounted for as incidental costs of the acquisition or disposal where transaction-based. Other management fees are disclosed separately as Resources Expended in the statement of Financial Aclivilies. Investment in subsidiaries aTe valued at cost less provision for impairment. 25 The H05Pital and Library in Manchestsr funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 August 2023 statement of accounting policies (continued) Pension schemes Contributions are made to the multi-employer defined benefit Tea¢hers' Pension Scheme at rates sel by the Scheme Actuary and advised by the Scheme Administrator. Contributions are also made to the Grealer Manchester Pension Fund, a multi-employer defined benefit pension scheme, for a small number of non-leaching staff, and also to a money purchase pension scheme for other non-teaching staff. In accordance with FRS 102 all schemes are accounted for as defined contribution schemes and contributions therefore are charged in the Statement of Financial Activities as they become payable. Oporatlng leases Rentals applicablo to operating leases are charged to the Statement of Financial Activities as they fall due. Taxation As a registered charity, the Foundation and its asso¢iated funds are not subject to taxation on its surpluses. However, provision is made for corporation lax on any trading profits generated by Chetham's Hall Limited and Chelham's Tradin9 Limited after provision for Gift Aid payment. Financlal Instruments Basic financial instruments are initially rec￿niSed at transaction value and subsequently measured at amorlised cost with the exception of investments which are held at fair value. Financial assets held at amorlised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubl. Cash at bank and in hand is defi'ned a5 all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions. Assets and liabilities held in foreign Cufrency are translated to GBP at the balance $heet dale al an appropriate year end exchange rate. Critical accounting judgements and key sources of estimation uncertalnty In the application of the accounting policies, Feoffees and Sehool Governors as trustees are required lo make judgement. eslimales, and assumptions about the carrying value of assets and liabilities that are not readity apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these eslimales. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are ￿COgniSed In the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future penods if the revision affected current and future periods. In the view of the Feoffees and School GoveTnors, no assumptions concerning the future or estimation Ltncertainty affecting assets or liabilities at the balance sheet dale are likely to result in a material adjjjstment to their carrying amounts in the next financial year. 26 The Hospital and Library In Manchester funded by Humphrey Chetham Esq and incorporated by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS For thg year gndad 31 August 2023 School fees 2023 2022 Gross fees receivable Less-. total Bursaries, grants and allowances 10,246,512 1634,364) 10,067,230 1599,9671 9,612,148 9,467,283 Scholarships and Bursaries financed from restTieled and endowment funds 634,364 599,967 The total educational awards financed from reslricled funds con7prise'. 2023 2022 Scholarships and Bursaries Grallts, awards and prizes 634,364 22,542 599,967 13,233 Other trading activities 2023 2022 Trading income, SLFmmer schools and factlity hire Tradlng income includes £0 12022.. £2671 in relation lo Chelham's Hall Limited an¢J £633,954 12022". £479,065) in relation to Chetham's Trading Limited. 27 The Hospitsl and Library in Manchester funded by Humphrey Chetham Esq and Incorporated by King Charlés11 NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 August 2023 Invesbnent income 2023 2022 Income from UK listed investments Igross) Interest on funds deposiled on bank reserve accounts 281,671 18,012 261.939 789 Bequests and donations During the year sigllificant bequests and donations were gratefully received from the following= The Estate of the late Mr M Bateson. the Beaverbrooks Charitable Trust, the estate of the late Mr A Chesters. Mrand Mrs Torevell, MT and Mrs Frost, Mr D Thompson, Mr B Doyle, Mr D Gaskill, the Haworth Charitable Trust, Hulme Tiust Estates IEducational), Mr P Jackson, the Leverhulme Trust, LHR Charitable Foundation, the estate of the late Mr R Mcfartane, the Oglesby Charitable Trust, the èslate of the late Mr M Pear¢e, and the Mabel Evans Trust. Donations and bequests were also received from many other sources and the Feoffees and School Governors wish lo express their sincere gratitude to all donors. Anclllary activities 2023 2022 Charitable activities Concert income Summer Music Schwl Piano Summer Schoo Sundry income Insurance claims 29,700 74,136 263,327 15.454 63.640 100.869 551.972 731.935 Expenditure 2023 2022 Charitable expenditilTe includes.. Depreciation of fixed assets Auditors, remuneration.. audit services Operating lease costs 1.133.876 22,320 1,084,067 23,694 The above excludes rent of£627,00012022- £627,OC¥)) paid by Chetham's School ofmusic lo Chetham's Hospital which is eliminated by way of transfers be￿een funds (note 101. 28 The Hospital and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the yeaT ended 31 August 2023 Employment costs 2023 2022 Wages and salaries Social security costs Pension contributions 6,218,372 537,270 941,624 5,905,888 526.022 909,152 The average Month￿ number ot employees in the year was 338 (2022 - 3431 of which 16212022 - 1811 were leaching staff. The key management personnel comprise the two Joint Prineipals, the Director of Finance, and Chetham'5 Librarian. The total employment benefits of the key management personnel were £457.641 {2022.' £460,9741. Total employment benefits include gross salaries, employerfs National Insurance Contributions, employerfs pension contributions, benefits in kind and Class 1A National Insurance Contributions on those benefits in kind. Neither the Feoffees nor members of the other Foundation Commillees nor persons connected with them received any remuneration, other benefits or reimbursement of expenses from the Charities or from any connected organisalion during this year or the previous year. The number of employees whose emoluments exceeded £60,000 was a5 follows.. 2023 No. 2022 No. £60.00110 £70,000 £70.00110 £80,000 £80,00110 £90,000 £90,001 to £100,000 £100.00110 £110,000 Contributions paid in the year for the provision of defined benefit schemes for higher paid employees were £109,00912022 - £74,993> and for money purchase pension schemes for higher paid employees were £012022 £19,300>. There are no12022 - 11 higher paid employees to whom retirement benefits are accruing under money purchase s¢hemes and 612022- 41 higher paid employees in defined benefit schemes. 29 The Hospital and Library in Manchester funded by Humphrey Chotham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For th¢ yeaT ended 31 August 2023 9. Analysis of total resources expended Staff costs other costs Dep￿Ciall0n Total 2023 Total 2022 Cost of generating funds FundraisSng Publicity Conference, facility hire and trading costs Financing costs Investment management ¢osts 132,921 94,038 15,800 24.045 148.721 118.083 116,242 163,519 109,144 396,186 113,120 48,333 597,484 505.330 113,120 48,333 933 587 409,095 122.611 49.255 860,722 336,103 Charitable activifyes Teaching costs- academic Tegching costs - music Welfare Premises Scholarships & Bufsaries Grants, awards & prizes Library cosls 1.746,676 3.362,698 462,824 872,765 394.648 878.721 1,321.296 1,507,150 634,364 22,542 55,967 4,814 $88 2,141,324 2,015,111 4,241,419 4,013,322 1.784,120 1.648,945 3.513,791 3.058,804 634,364 599,967 22,542 15,403 226,835 202,179 12,564,395 11,553,731 1,133.876 170.868 6,615,831 1,133,876 Govemance ¢osls 65,180 5 477,352 118,202 143,201 13,616,184 12,557,654 7 004,956 1,133876 Conference and facility hire includes £4,35712022.- £547} in relation lo Cholham's Hall Limited and £483,85212022'. £407,191) in relation to Chetham's Trading LiTnited. 30 The Hospital and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS For the year onded 31 August 2023 Analysis of total resources oxpended (continued) Total Tesour¢es expended is £1,156,12812022 - £1,022,787) in respect of support costs detailed below, that have been allocated lo the above expense headings. Hospital School Library Total 2023 Total 2022 Support Costs Management Administration Recfuilment Office costs IT Legal and professional Insurance 124,054 285,110 40,264 68,407 153,770 41,407 86,726 799,738 170.842 15.489 294,896 300,599 40,264 88,142 153.770 66,366 212 091 1 156,128 269,826 257,614 24,998 65,500 103,566 124,339 176944 1,022,787 19.735 22,506 122 157 144,663 2.453 3.208 211727 10. Transfers between funds Unf8sthcted Funds Gen8r&l D8sign8ted Restricted Endomnent Funds Funds Tol&l Funds Hospital Rent from School New School Development Fund Palaline Demolrtion Prqect 627.000 {266,506} 50,000 310.494 627.000 266,506 50,000 266 506 627.000 School Rent paid to Hospital Millgale Building Relurbishment Fund Chesters Bequest Fund Organ Cash Seltlemenl Fund Bursary Fund (627.0001 307,130 1627,0001 {307,1301 563,488 112,0001 47,548 279,166 1563,4881 12,000 858.618 47 548 627,000 Llbrary Transfer from Library Patrons Fund 238 {238) 238 {2381 TOTAL 689.898 908,618 218 720 31 The Hospital and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023 Tangible fix8d assets Heritage Assets Freehold Property Fumiture. Fittings. Planl & Instmments Equipment Total Cost.. Al 1 September 2022 Addib'ons 115,CQO 44,578,728 405,405 879,432 235,5 368,640 298,935 45,941,800 939,936 At 31 August 2023 115.W) 44.984,133 1,115,028 667.575 46,881,736 Oepreciation". At 1 September 2022 Charge for Ihe year 11,433,19S 977,359 594,692 94,695 201.379 61.822 12,229,267 1,133,876 At 31 August 2023 12,410,555 689.387 263,201 13,363,143 Nel book value.. At 31 August 2023 115,000 32,573,578 425,641 404,374 33,618.593 At 1 September 2022 115,0()o 33,145,532 284.740 167,261 33.712.S33 The cost of tangible fixed assets includes the cost of land al Walkers Croft, which was purchased in March 2008 with the support of a grant from the North West Development Agency INWDAI. This piece of land is secured by legal charges in favour of Nalwest as security for the 2011 bank loan. Information on Heritage Assets is given in Nole 1 lo the accounts. There were no heritage asset additions 01 donations during the year (2022: none). Five year finallcial summary of Heritage Asset transactions.. 2023 2022 2021 2020 2019 Additions.. Donations Total 32 The Hospital 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 2023 12. Investment5 Restiicled Unrestricted Funds Funds Endowment Funds Tot81 Balance at 1 September 2022 Additions Disposals Revalualior* losses Change amounts awaiting investment 5,515,812 1.288,598 1,274,045 451,514 {1,185,668} 1396,912) 195,269) 133,3181 3.444,564 10,248,974 678,396 2,403,955 1712,120) 12,294,700) 160,8241 1189,411} 172.189 5.636 12,667 190.492 Balance at 31 August 2023 5.336,731 1,304,246 3,337,349 9,978,326 Historical cost of listed investments 4 792 996 1,328,382 2,572,553 8 693.931 Listed on UK stock exchange Cash holding 5.325,842 10,889 5,336,731 1,284,068 20,178 1,304,246 3,288,237 49.112 3,337.349 9.898,147 80,179 9,978,326 All investments awe held to provide an investment return. 13. Debtors {excluding fees) 2023 2022 Other debtors Prepayments Accrued income 308,183 153,220 121,599 121,247 40,126 1067,164 469,908 1,341,631 A lolal of £nil12022'. £nill was written off in the year for bad debls and a £6.239 increase was made in the provision12022'. increase of £1,224}. 33 The Hospitsl 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 2023 14. Creditors" amounts falling due within one year 2023 2022 Bank loans (note 151 Other Cfeditors and accruals Fee$ recewed in advance from DfE 163,354 1,284.115 1900 000 153,304 1,149,533 1900 000 15. Creditors: amounts falling due after more than one year 2023 2022 Bank loans 1460 820 1627 269 The totsl bank loans outstanding al 31 August 2023 amounted lo £1,624,17412022 £1,780,573>, Of this amount £163,35412022 - £153,304) Is repayable within one year and is therefore included in current A bank loan of £3.000,000 was taken out in May 2011 for a 20 year period to help lo finance the construction of the New School Building. The loan interest is fixed al 6.40A for the life of Ihe108n. The loan is secured by first legal mortgage5 over the freehold land on the north side of Long Millgate, Manchester and over the freehold propety of the Hospital and Library. together with the land on Walkets Croft where the Now School Building is situated. The Hospital and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 August 2023 16. Allocation of the charity's net assets The net assets are held foT the various funds as follows.. F￿e￿ Assets Net current assets/ (liabilities) Long lem7 liabilities Total Investm8nts Hospltal Unr¢sliicted Restricted Endowment 1,621,382 29.566,618 3,454 359,409 726,589 1,089.452 821,152 1455,186) 2,662 368,628 2.445,988 28,Q10,021 729,251 31,185,260 11.460.820) 31,188,000 1,460.820 School Unrestricted Restricted 2,211,910 3,683 1,274.462 4,977,321 3,996,721 391.964 7,483,093 5,372.968 2,215.593 6.251,783 4,388,685 12,856.061 Library Unreslri¢led Restricted Endowment 115,OOD 26,330 191,771 9.740 107,551 93,960 333,101 9,740 2,503,210 2 846.051 2,610.761 2.637 091 115.000 Total Unrestrictèd ReslTrcled Endowment 3,948,292 29.570,301 1,304,246 5,336,730 3,337 350 9,978,326 5,009,844 153.4821 104.889 4,851,273 10,262.182 33.392,729 3,232,461 46,887.372 11.460.820) 33,518,593 1.460,820 17. Endowment funds Balan￿ al I Seplemb8r Incoming ResoU￿e$ Inve61ment 2022 ReSou￿eS expended gains/(losses) Trdnsfers Balance at belween 31 August funds 2023 H¢)spital Investmenl Repl￿ment Sinking Funds EF Jacob Endowment Fund 583,668 583,668 140.308 723,976 5,275 5,275 145,583 729,251 Library GrAnts from Heritage Lollery Fund 2,570,550 67,340 2 503210 Total 3,294,526 62,065 3.232,461 35 The Hospital and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 Au9ilSt 2023 Hospital Investment Replacement Sinking Funds Under Schemes approved by the Charity Commissioners, Hospital investments worth £183,340 were sold between 1981 and 1992 in order lo provide finance for major capital purposes, subject to the restoration of the original sums by means of annual investments through Sinking Funds. This was achieved dLsring the year lo 31S1August 2014 and the Schemes have been discharged. E F Jacob Endowment Fund A fund for the general benefit of the Hospital_ Any income generated is credited lo unrestricted reserves. Library Endowmgnt Fund The Heritage Lottery Fund grants We￿ given in order lo provide subslantialty improved investment income and thereby to ersable improved facilities in the Library. Accordingly, investment income and realised gains, together with expenditure therefrom, are included as part of GeneTal Fund movements in the Slalemenl of Financial Activities. The Hospital and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charle511 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023 18. Restricted funds Ba1811C8 St Transfers 88lsnc8 at 31 Augusl 2023 S8Ptember 2022 IrKominy Resources resoijrces e¥pendgd InvèÉlm&nts g3insl{los$¥$) fund5 Hospital Capital Fu￿- Millgate Extension CapÈtal Fund- Land Capilal Fund- New School Building Capital Fund- Nicholls Conv8rskFn Capital Fund- Conixrt Hall Impiovernen18 Fund New School Developmen¢ Fund cOr￿rt Hall Fund Inslrurnenl FurHI Nicholls Fund Mtscellaneous Fund 895,852 4,50D,O(KJ 17,580.639 579,421 8,852.378 22.569 11,777,725) 1196,9861 193,308 32,6D1 294 28,682 351 139,6681 856,184 4,500,000 16,994,807 580.915 6,654,713 22,569 11,eA)9,0841 1196,9861 194,008 32,601 294 2B.010.021 1585,8321 118,5061 1197.S651 12,243 1110.1081 266.5Q6 20,763 17,2041 112,8591 School Vernon Fartey Fund Hazel Srnilh F￿￿￿ Ida Carroll Funtl HOSp￿al Prvze Fund Kobert Music Prize Fund A£adetnic Prizes Fund Pnzes Fund Davitt Harttqan MerrBxial Pi4no Fund Neil Vinl Bursary Fund Miln8 Fund Bursary Fund Bateson Farnlty Bursary Fund Leyerhulme Trust Bursary Fund Oglesby BuFsary Fund 2022 matches Funding Bursary Fund Tony and Tania Music PrvLo Fun Hospita116fS Carnp Fund Melbr Endowmeni Fund Amy Watson Endowm8nt Fund John Shaw Bursary Fund stolkF Bursary Fund Ethel Kerry Bursary Fund Hardship Fund Ctrop Fund Mis￿lIa￿e0uS ReslriGted Fund Davkl Gas￿11 Music Week Fund Opera Voctl Course DavKJ Ga5kill- Balancp Sheet 12.887 14,240 1,231 81.675 2,018 320 200 2.588 33,270 229,521 1,818,$51 918,944 1,d20 287 4,60S 10,000 14.063 5,345 24.551 1.502 14.304 1,772,796 59.387 415 59,107 13001 114,2401 12,0001 11501 1501 f2,587 17691 81,525 325 100 2.588 29,170 247,824 1.822.752 735,375 755 9,883 13.796 5,000 9.613 5,345 24,551 14.1(K)I 113,1201 1223.1351 1183.5691 180.DDOI 131,7281 130,0001 15.0001 14,4501 31,423 1119,7131 194,597 147,5481 79.335 41,324 39,191 11,5021 14,304 1,684,019 56,222 415 104.077 188.7771 13,1651 11,2501 19.0691 116,6661 1,250 54,039 ,000 7,500 133,3341 7,500 33,334 18,684 2,521 33,546 45,733 103.585 184.251 7,083 275.126 5 372.968 33,334 Friends of Chelham's Fund Chets in London Fund Stollei Hall Fund 50 AnnN8rsary FMrK1 Confvau5 Classroom Fund Piano Surntller SchoDI Fund Capttal Fund- Inslrum8Thts Grants and Other Inccrne Fund 17,528 2,521 37,867 52,156 80.978 108,934 7.083 138.141 5528413 1,162 161 10,917 115.2381 16,4281 22,809 1216,0501 291.367 218472 989.279 88.2 37 The Hospilal and Library in Manchestsr funded by Humphrey Chelham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023 18. Restrlcted funds lconunuedl Balarne at I SepEemher 2022 TTgnsfefS Belween fijnds 881&nc& at Sl Atwttsr 2023 Incoming R&souThs resourcfys 8xp&nd&d Invesim8nts 9￿￿(lOsSes) Librdry J Paul Getty Fund MistÈllaneovs Restricted Fund Library Patrons fund Arts and Heritag8 Fund Heritage Cornpa55 Fund Conservation Project Fund 1.710 1,710 238 12381 2,470 1.250 2,470 710 15401 4.850 238 $40 238 TDtsI 34 221044 1022 523 218720 101 149 33 392 729 38 The Hospital and Library in Manchestsr funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023 18. Restricted funds (continued) Hospltal Bulldlng Funds Capital Furpd- Millgate Extension A fund which represenls the depreciated ¢apilal cost of the Millgate Extension. Gapital Fund- New Lgfftl A fund which represents the Capital value of the new land purchased in 2008 {note 11}- Capital Fund- New School Building A fund whieh represents the depreciated capital value of the New School Building. Capital Fund- Nicholls Conve￿10n A fund which represents the depreciated capital value of the Nicholls Conversion. Capital Fund- Conc8rt Hall A fund which represents the depreciated capital value of the Conoert Hall. Improvements Fund A fund established from the proceeds of donations from a major anonymous Trust, for use at the discretion ol the Feoffees for major improvements. New School Development Fund An appeal fund for use in furthering the New School Development Project. This fund is in deficit at 31 August 2022 as expenditure has been incurred in advance of expected income being received. The Feoffees intend to clear this deficit with the receipt of relevant donations and by annual transfers from the Hospital's Unrestricted FLtnd. Concert Hall Fund A fund estsblished for the constfuclion of the School's New Concert Hall. This fund is in deficit at 31 August 2022 as expenditure has been incurred in advance of expected incorne being received. The Feoffees intend lo clear thi& deficit with the receipt of relev8nt donations and by annual transfers from the School's Unrestricted Fund. Other Funds Instrument Fund A fund established to give finan¢ial assistance lo parents of students al the School wishing to purchase new instruments. Nicholls Fund A ftjnd that ¢an be used either to give hardship awards to parents in financial difficulties, or towards the maintenance of the Foundation's buildings. Miscellaneous R681ricled Fund This fund comprises various miscellaneous and small funds, lo be used for a variety of charitable PLsrposes 39 The Hospital and Library in Manchestsr funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS Forthe year ènded 31 August 2023 Restrictod fund5 (continued School Vernon Farley Fund A fund established in order to make annual prizes for piano-playing and sight4eading. Hazel Smith Fund A prpze or Bursary awarded annually lo a Lower School student who plays piano, woodwind or a string instrument and whose family is in financial need, Ida Carroll Fund Prizes awarded annually to double bass players. Hosprtal Prize Fund, Kolb8rt Music Prize Fund, Academic Pnzes Fund. Music Prizes Fund Prizes awarded to students each Speech Day under the terms of a varlety of trust fvnds established by various donors. David Hartig8n Memorial Piano Fund A fund established in order lo make annual awards to de5eTving piano students of Chetham's School. Neil Vint Bursary Fund A Bursary awarded annually to former students of Chelh8m'5 School aged betsveen 18 and 25, to help develop Iheir careers. Milne Fund This fund was eslablished te help students in financial difficulty and to support the d@velopment of the School's facilities. Bursary Fund This fund was established lo help students who ar6 in need of financial assistance. Bateson Fafftily Bursary Fund A fund established for the estate of the late Michaol Bateson to provide Bursaries for students al the S¢hool who are in fi'nancial need. Andtsw Lloyd Webber Foundation Bursary Fund A tund established to support students at Chetham's who require finar¢cial assistance. Leverhulme Tmsl Bursary Fund A fund established lo support students at Chetham's who fequire financial assistance. Oglesby 8tJrn8ry Furpd A fund established by the Oglesby Charitable Trust, providing Bursary support to Chelham's students. 2022 Matched Ftsnding Bursary Fund A fund established to support Ukrainian students al the school. Tony and Tania Music Prize Fund A fund established lo provide Bursary support to school students. Hospitallets "Canpp. Ftjnd A fund established in order to assist extra-mural activities. Mellor Endowment and Amy Watson Endowment Funds These funds are to provide benefits for the School. 40 The Hospital and Library In Manchester funded by Humphrey Chetham Esq and incorporated by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS Forthe yoar ended 31 August 2023 18. Restricted funds {continued) John Shaw Burs8ry Fund A fund to provide Bursary support to students from Lancashire or Yorkshire. Sloller Bursary Fund A fund established by the Sloller Charitable Tnjst lo support students who live in Oldham. Ethel Keny Bursary Fund A fund established from the estate of the late Ethel Kerry, lo provide Bursaries for studen15 who live in Lancashire, Yorkshire, Cumbria and Scotland. Hardship Fund A fund established to Pfovide support to sludenls al the School who are in financial need. CO-DP Fund A fund established lo help the School. Miscellaneous Reslriclgd Fund This fund comprises miscellaneous small restricted fvnds for a variety of uses. David Gaskill Fund A fund established for 2024125 and 2025126 to support creattve engagement projects {specffically online workshops, increasing participation and skills development}. Brendan and Nicola Doyle (Opera Project) A fund established for 2 years lo support Opera and Stagecraft courses for Chetham'5 students {2023124 and 2024125). Friends of Chetham's Fund A fund to support the advancement of education of students at Chelham's by fvnding projects and facilities as the School requires. Chets in London Fund A fund to SUPPOrt the School. Stoller Hall Fund A fund lo support the costs of running the Stoller Hall. 5Iyfi Anniversary Fund A fund eslablishecl lo support the work of the School in a variety of ways. Capilal Fund- Instruments A fund representing the depreciated capital value of instruments purchased using the InstTumenl Fund. This fund is now ftjlly expended. Confucius Classmom Fund A fund established for the costs of establishing the Confucius Classroom. Piano Summer School Fund A fund established from the surplus generated by the running of the annual Piano Summer School. The fund is lo enable the Piano department to facilitate further Summer Schools. to support piano students and lo purchase instruments. Grants and Oth&r Income Fund This fund shows grants and other restricted income received for specific charitable purposes such as Creative Engagement events and conferences, 2nd specifi'c support for individual students. 41 The Hospital and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023 18. Restri￿ed funds (continu8d) Library J Paul Ggtty Fund This is a fund for the conseNation of Library material. This fvnd is now fully expended. Miscellaneous Restricted Fund This is a fund established for miscellaneous restricted donats"ons. LibTrry Patrons Fund This fund is for donations made by Library Patrons and the is translerred each year to the unrestricted General Fund. KaN ma￿ ReGording Project Fund This is a fund established with a grant from the Lipman Millband Trust for digilising and making facsimiles of the books used by Marx when he visited the Library.- This fund is now fully expended. Arts and Heritagg Fund This is a fund established for an art installation in the Library. Booth Chanties Fund This is a fund established for a proje¢t on the history of SaSford. This fund is now fulty expended. Hills Archive Fund This is a fund established to meet the expenses of cataloguing the Hills Archive Collection. This fijnd is now fully expended. HLF Project Fund This is a ftjnd established to support the HLF application for the visilor attractton project. This furkd is n()w fully expended. Heritage Compass Fund A fund established lo provide training support for ttvo development departments. Conservation Project Fund A fund eslablished lo support the conservation work of the Ilbrary_ 42 The Hospital and Library In Manchester funded by Humphrey Chetham Esq and incorporated by King Charles 11 NOTES TO THE FINANCIAL STATEMENTS For tho yoar ended 31 August 2023 19. Unrestricted funds Balance al i September 2022 Transfers bglween runds Inveslm8nl g8ins/ (108ses) 8af8nc8 At 31 August 2023 Inctrming reSoU￿eS ResoiiFres expended Hospital General Fund De51gn8led funds.. Palatine Demolition Fund 2.631.384 630,268 1270,2831 1316,5061 32 2,674,895 278,90 2,3S2,477 50.000 (270,2831 1266,5061 630,268 32 2,445,988 School General Fund Designated funds.. Chillei Unil Fund Millgate Building Refurbishrnenl Fund Dining Rooffl Refuibishm8nl Fund Chestèrs Bequest Fund Organ Cash Seltlemenl Fund Music Department & Tour Fund 6,508,424 10,380,637 111,103,522} 6,166 170,gy9) 6,620,706 3D,ODO 30.000 307,130 {307,1301 91,725 91.725 794,120 S5,092 131,1571 1563,4881 254.567 475,000 12,000 487,000 1,221 2,000 8,205,178 10,437.729 1,684 11.136.363 905 7,483,093 47.548 70.999 Librnry Gènér81 F￿fid 390,437 212,523 241,129 238 28,￿8 333,101 10.948.092 11.280,520 11.647 775 218,720 99.935 10.282,182 43 The Hospitsl and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 August 2023 19. Unrèstricted funds (continu8d) Hospital Palatine Demolition Fund A fund established for the costs of demolishSng the Palatine Building. Thi8 fund is in deficit al 31 August 2023 as expenditure has been incurred in advance of expected income being received. The Feoffees intend to clear this Fund's deficit with the receipt of relevant donations and by annual transfers from the Hospital's Unrestricted Fund. School Chi118r UnitFund A fund established to provide resources for replacing the Chiller Unil in the New School Building at the end of ils useful life. Millgate Building RefU￿AShment Fund A fund established for the refurbishment of the boys, boarding accommodation and improvements lo other areas in the Millgale Building. Dining Room Refurbishment Fund A fvnd established for the refurbishment of the School's dining room. Chesters Bequest Fund A fund established from a bequest to supporl developments at the school. O￿an Cash Settlement Fund A fund eslablished to hold the insurance cash selllemeftl for the fire damaged Vlthiteley Hall Organ. Music Departn7ent TourFund A fund established to manage the costs of overseas Music Department tours. 20. Pensions arrangements The School participates in the Teachers, Pension Scheme {'the TPS") foT its teaching staff. The pension charge for the year includes ¢ontribulions payable lo the TPS of £824,49512022'. £781,2251, and at the yearond £nil12022 - £nill was a¢crued in respect of contributions to this scheme. The TPS is an unfunded multi-employer defi'ned benefits pension scheme govemed by The Teachers, Pensions Regulations 2010 las amended) and The Teachers, Pension Scheme Regulations 2014 {as amended). Members contribute on a "pay as you go. basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds Pfovided by Partiament. The employer contribution rale is set by the Secretary of Slate following scheme valuations undertaken by the Government Actuary's Departfflent. The most re￿nt actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023. The Hospital and Library in Manchester funded by Humphrey Chetham Esq and incorporated by King Charles11 NOTES TO THE FINANCIAL STATEMENTS For thg year ended 31 August 2023 20. Penslon arrangements (continued) Following the Mccloud judgement. the remedy proposed that when btrnefits become payable, eligible mèmbers can select lo receive them from either the reformed or legacy scheme5 for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in PTeparing the 2020 valuation have valued the 'greater value. benefrts for groups of rolevant members_ The valuation confirmed that the employer contribution rdte foi the TPS would increase from 23,6% to 28.60/0 from 1 April 2024. Employers are also Tequired lo pay a scheme administration levy of 0.08° giving a total employer contribution rate of 28.680A. In addition, a small number of employees are members of the Greater Manchester Pension Fund I°GMPF"}. The GMPF is a mulli-employer final salary defined benefit scheme and the assets of the School are pooled with similar inslrtulions for actuarial valuation purposes. Accordingly, under FRS 102 the Scheme 15 accounted for as a defined contribution scheme. The pension cost is assessed every three years in accordance with the advice of an independent qualified actuary. The latest actuarial valualton of the scheme was at 31 March 2022 when the maiket value of the assets of the Scheme was £29,324 million, being 1040/9 of members, accrued benefits. The pension contribultons made to the Schem8 for the year ended 31 August 2023 were £4,71412022- £19,902). The employee contribution rale varied betweet? 5.50/4 and 6.8¥0 depending upon actual pay levels. The employer contribution rate was 25.10K lo March 2022 and then 25.4 /0. In addition lo the above. the conthbulions lo a money purchase scheme amounted lo £112,41512022- £108,025}. 45 The Hospital 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 2023 21. Operating lease commitments The School has minimum lease payments under non-cancellable operating leases as follows. Equipmerpt 2023 2022 thin one year Between two and five years After five years 26,652 103,496 132 593 14,132 13,846 22. Financial Instruments 2023 2022 £(100 £000 Financial assets moasured at amrtised Cost la} Financial assets measured at fair value Ibl FinanGial liabilities measured at amortised cost Icl 7,411 9.211 9,978 10,249 (4.8081 {4,8041 Nel financial a$$els measured at amorlised cust 23,205 14,654 la) Financial assets include cash, trade and fee debtors, staff loans. other debtors a¢¢rued income and amounts due from subsidiaiies Ibl Financial assets held at fair value include assets held as investments Icl Financial liabilities include deposits, lees in advance, trade creditors, and other cieditors Impairment losses charged lo financial assets measured at amortised cost in the year amoullled to £nil 12022.. £nill. 23. Related party transactions There are no related pgrty transactions that need to be disclosed irs the financial slatementS. 46 The Hospitsl 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 2023 24. Statement of financial activities - comparative figures by fund ND188 Hospilal Funds Scho Fun¢ts Libt&ry Funds 2022 Incom8 frorn: Ch8rltable 8ctlvltles.' School fees 10,067,230 10,067.230 Ancillary aclivilies Othertradlng actlvlNes.' Activlties lor gen8raling funds Inveslments.. Inve51menl income Voltsnt&rysources.' Bequests and donation5 Grants receNed 554 7(M).911 30.470 731,935 267 489.324 748 490,339 13.697 159.748 B9,283 2,728 27.138 1.546.054 96,289 41,099 1,614,291 96,289 Total In¢omlng resources 41,856 13,059,556 161.600 13.262,812 Expenditure on.. Raising ffunds.. FUndra￿Ing Publicty Conference. facility hire and trading costs Financing costs Investment management costs 12,870 103.372 183.519 408,548 2,803 31.11C> 116.242 163,519 409,095 122,611 49,255 547 119.808 2.884 15,261 136.109 709,352 15,261 860,722 Charltable acUvlUes.' T8aching costs- academ Teaching co$ls- music Welfare Premises Sthol•rships and Bursarios Grants. 3ward5 and prizes Library running costs Support and Govemance ctists 2.015.111 3,993,322 1,648.945 1,969.398 599,967 10,403 2,015.111 4,013,322 1.648.945 3.058.804 599,967 15.403 202,179 143.201 11.696.932 12,$57.654 20,000 1,089,406 5,ODO 202,179 1.662 203.841 219.102 53,956 1188,382 10 324 729 1.304.471 11.034.081 Total resources expended Net Incomellexpenthturel 11.262,8151 2.025.475 157,5021 705.1S8 Transfer between fullds fo 727,000 In7.LXJOI Gainsllloss&81 on inv85trnent a55ets'. Re2li5ed Unrealised 11,5571 166.6391 167,8551 1630.0571 116,0651 1142,7631 185,4781 1839,4591 Net movernent In funds 1804,0111 eOO,563 1216,3311 1219,7791 Fund balanc88 al 1 September 2(r21 32.362 815 13.133.028 3.187,598 48 683 441 Fund balances at 31 Augu8t 2022 31.758.804 13,733.591 2,971,267 48.463.fj62 47