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2025-08-31-accounts

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II

REPORT AND FINANCIAL STATEMENTS For the year ended 31 August 2025

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

Contents
Page
Annual Report of the Feoffees 1
Independent Auditors’ Report 14
Consolidated Statement of Financial Activities 17
Balance Sheets 18
Consolidated Cash Flow Statement 19
Notes to the Cash Flow Statement 20
Notes to the Financial Statements 21

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES

For the year ended 31 August 2025

The Feoffees and School Governing Body present their annual report for the year ended 31 August 2025 under the Charities Act 2011, together with the audited financial statements for the year and confirm that the latter 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 served during the year and up to the date of signing the accounts were as follows:

(Chairman Resigned 8 June 2026)

P.A. Lee, Esq. (Chairman Resigned 8 June 2026) H. Ross, Esq. (Vice Chairman) Mrs. V. Torevell M. Edge, Esq. (Treasurer) The Rt. Hon. The Earl of Derby Mrs V. Goldstone The Very Reverend R. Govender Dr. D. Hill (resigned 23 August 2025) J. Langridge, Esq. N. MacInnes, Esq. Prof. L. Merrick (resigned 17 March 2025) T. Newns, Esq. R. Websdale J, Healey-Brown (appointed 17 March 2025) Dr. J Hodgson (appointed 3 November 2025) A. Gregory (Chair appointed 8 June 2026)

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

School Governing Body

Under the terms of the Charity Commission Scheme, there is a School Governing Body managing the School of the Foundation, which, when complete, comprises nineteen members.

Those who served during the year and up to the date of signing the accounts were as follows :

(Chair and Treasurer)

M. Edge, Esq. (Chair and Treasurer) Mrs. C. Baxendale Prof. B. Brennan (Appointed by the School Governing Body) Councillor J. Davies (Resigned 16 April 2025) Mrs. E. Halstead K. Jaquiss, Esq. (Resigned 8 May 2025) Prof. L. Merrick (Appointed by the School Governing Body) L. Pratt, Esq. (Resigned 27 February 2026) H. Ross, Esq. Ms. K. Russell (Resigned 16 May 2026) N. Shepherd, Esq. L. Stephens, Esq. M. Corran Mrs V. Torevell (Resigned 20 May 2025) Cannon I. Jorysz (Appointed 9 September 2024) Mrs S Pike (Appointed 9 September 2024)

Library Committee

Those who served on the Library Committee during the year and up to the date of signing the accounts were as follows:

Mrs V. Goldstone (Chair) N. Barker, Esq. (Resigned May 2026) Professor M. Schmidt Dr J. Hodgson N. MacInnes, Esq. Dr. R. Oates N. Brooks-Sykes, Esq. Professor S. Handley Mr R. Johns, Esq. Ms M. McHugh Ms L. Evans Dr. L. Campion Mr C. Norwood Ms A. Ada Ogolo

(Resigned November 2024) (Appointed November 2024) (Appointed November 2024) (Appointed November 2024) (Appointed November 2024) (Appointed November 2024) (Appointed November 2024) (Appointed November 2024)

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

Officers

Joint Principal Joint Principal Director of Finance The Librarian The Clerk to the Feoffees

T. Redmond, Esq. Ms. N. Smith Mr P. Oberg Ms J. Simpson J. Aldersley, Esq.

Principal Office Address

Chetham’s Hospital School and Library Long Millgate Manchester M3 1SB

Advisers

Bankers

National Westminster Bank plc 182 Deansgate Manchester M3 3LY

Solicitors

Butcher & Barlow LLP 3 Royal Mews Gadbrook Park Northwich Cheshire CW9 7UD

Veale Wasbrough Vizards LLP Narrow Quay House Narrow Quay Bristol BS1 4QA

Auditors of the Charitable Foundation

Saffery LLP 71 Queen Victoria Street London EC4V 4BE

Investment Managers

Rathbone Brothers PLC Port of Liverpool Building Pier Head Liverpool L3 1NW

Insurance Brokers

Marsh Commercial Kabel House 15 Quay Street Manchester M3 3HN

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES

For the year ended 31 August 2025

Structure, governance and management

Governing document and structure

The full name of this charitable foundation is “The Hospital and Library in Manchester founded by Humphrey Chetham, Esq. and Incorporated by King Charles II” (Registered Charity Number 526702).

The Foundation, including the School, is regulated by a Charity Commission Scheme dated 27 May 1952, and amended by a Scheme dated 22 October 1969.

Chetham’s Hospital, Chetham’s School of Music and Chetham’s Library are separate charities but are registered under one Charity Number, following a Uniting Direction issued by the 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 Letters Patent of King Charles II, dated 10 November 1665.

Chetham’s Hall Limited is a subsidiary undertaking that is a wholly owned subsidiary of Chetham’s Hospital.

Chetham’s Trading Limited is a subsidiary undertaking that is a wholly owned subsidiary of Chetham’s School of Music.

Governing bodies

The Feoffees are the governing body of the Hospital and Library charities. The School Governing Body of Chetham’s School of Music 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 Feoffees.

Recruitment and training

Chetham’s Hospital

Feoffees are appointed under the terms of the Will of Humphrey Chetham. 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 business 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 arranged on an on-going basis as necessary.

Chetham’s School of Music

The appointment of members of the School Governing Body is confirmed by the Feoffees except where otherwise stated. The term of office 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 recruitment procedures are followed for all School Governors including DBS checks. Continuing training for existing members is organised on an ongoing basis as necessary. At each meeting of the 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 and Joint Principal provide safeguarding training to all trustees annually.

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

Chetham’s Library

New members of the Library Committee are selected by the Library Committee and their appointments are confirmed by the Feoffees. Members serve for a three year period with the opportunity for re-election at the end of that time if appropriate. New members are chosen from a wide variety of academic and business backgrounds and are inducted into the workings of the Library by Chetham’s Librarian who also arranges for ongoing training for existing members as necessary.

Organisational management

The Feoffees are legally responsible for the overall management and control of Chetham’s Hospital and of Chetham’s Library. The Feoffees meet formally at least twice a year. The Investment Sub-Committee oversees the investment portfolio and works with the Investment Managers.

The day to day running of Chetham’s Hospital is delegated to the Joint Principals in collaboration with the Finance Director (financial matters) and the Facilities and Site Manager (for building matters).

The day to day running of Chetham’s Library is delegated 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 at least three times a year. There are two sub-committees of the Governing Body, the Resources Committee and the Safeguarding Committee.

The day to day running of the School is delegated to the two Joint Principals.

The Remuneration Sub-Committee sets the remuneration packages for the Joint Principals and Director of Finance. The remuneration package of the Librarian is set 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 Library. Detailed considerations of risk are delegated to the Joint Principals, Librarian and Director of Finance and to the Resources Committee which identifies and assesses risks and establishes controls throughout the year.

The Feoffees deem the major risk faced by the Hospital to be the risk that fundraising achievements are insufficient to provide the necessary resources to properly maintain the buildings and resource the activities to which the organisation has committed. The Development Department is monitored on an on-going basis directly by the Feoffees and its reports are scrutinised closely at their regular meetings.

The School Governing Body maintains a comprehensive risk register. Key risks include the impact of a change in the Music and Dance Scheme which is the major source of ongoing fee income for the School, reputational damage, safeguarding and health and safety 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 Library is its financial sustainability. Whilst the Hospital charity is in a position to financially support the Library on an ongoing basis, the Library staff, Feoffees and Library Committee members are committed to sourcing alternative financial resources to provide a sustainable future for the Library.

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

The key controls used by the Foundation include:

Through the risk management processes established for the Foundation the Feoffees and School Governors are satisfied that the major risks have been adequately managed. It is recognised that systems can only provide reasonable, but 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 provisions for extension and improvement of those premises and purchase of additional land and in the payment of grants and allowances and the award, inter 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 of music.

The object of the Library is to provide, under the Will of Humphrey Chetham, “A Library within 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 to provide the optimum resources to enable Chetham’s Library and Chetham’s School of Music to excel in their respective fields of expertise and to facilitate wide public access to the services offered by both entities. The Feoffees and School Governors have had regard to the Charity Commission’s guidance on Public Benefit.

The Public Benefit aims of the School are as follows:

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

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 to advance the education of the public by the provision of opportunities to study historical and contemporary literature, specialising in the history of the North West of England.

Objectives for the year

The overarching objective has been to ensure that the charities and the services provided to beneficiaries are maintained at the highest possible level.

The major objective for the Hospital this year has been to continue to fulfil its stated aims of supporting the Library and School.

The main objectives of the School were as follows:

The major objective for the Library this year has been to continue to fulfil its stated aims of the provision of a Library. Fundraising and Library Tours have been prioritised to help to ensure the Library’s activities are sustainable.

Strategies to achieve the year’s objectives

The strategies used to achieve the Hospital's objective this year include continuing in aiming to raise the necessary funding to cover the funding gaps incurred during the on-going Site Development Project.

The School's strategies included:

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

Principal activities of the year

The principal activities of the Hospital were the provision of premises to house the School and Library and associated activities, together with the awarding of grants to students of the School.

The principal activity of the School was the provision of a musical and academic education to young people between the ages of 8 and 18. The School also provides an extensive outreach programme to encourage wider community access to the excellent teaching resources of the School.

The principal activity of the Library was the provision of a library and associated activities.

Foundation buildings

Under the Will of Humphrey Chetham who died in 1653, College House was purchased for the foundation of a hospital (school) and a library. The accounts of the Foundation do not incorporate any value of College House.

The value of land and buildings shown in the financial statements is the purchase price of the Millgate Building, and the construction costs of New College House, the Millgate extension, the School Building, the conversion costs for the Nicholls Building re-development, the construction costs of the Stoller Hall and of the redevelopment of the boys' boarding accommodation in the Milgate 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 £162 million on a rebuilding basis.

The Hospital is responsible for the external repair and maintenance of the Foundation’s buildings, and the costs are charged to its annual accounts as incurred. The School and Library pay for internal repairs and maintenance within their own respective accounts.

Grant making 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.

Around 80% 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 (DfE). This Scheme ensures that families are only asked to contribute towards the fees of the School at a level that they can afford. For a number of reasons, usually because the Scheme is for UK residents, a small number of students are not eligible for financial support through the DfE scheme. A significant part of the School's activities is the provision of bursaries to these students, to facilitate the widening of access to the School. Bursaries are based on the School's assessment of financial need. Detailed means testing is carried out by the School to ensure that its funds are directed towards those who would otherwise not be able to afford to come to Chetham's. This year the School contributed £769,900 (2024: £619,160) from Restricted Funds to support students financially. The amount contributed each year varies according to specific need in each particular year.

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

Review of achievements and performance for the year

Review of activities

Chetham’s Hospital

The major activity of the Hospital during the year has been to undertake feasibility studies, designs and work with the conservation team to increase public access to the medieval estate by the opening of the South Gate Entrance to the site. This will enable there to be increased visitor activity in College House – the Medieval Buildings. This part of the Site Development Project is subject to the securing of the necessary funding.

We have continued to look at the technical possibility of a water source heat pump that could help de-carbonise the site and reduce energy consumption. This is a long term strategy that will require funding from external sources to achieve. We are considering the use of the Palatine Folly Building and its future as part of the Chetham’s estate.

Safeguarding matters are always at the forefront of any changes to how we use our buildings and the activity that takes place here.

Chetham’s School of Music

At the start of the academic year, the School had 340 students on roll (2024: 333), including twelve Choristers as part of its role as Choir School for Manchester Cathedral. The cohort comprised 191 girls and 149 boys: 135 in the Sixth Form, 171 in Years 7–11, and 34 Juniors. Approximately 60% of students were boarders.

Admission is based solely on musical ability, assessed through a rigorous audition process. For entry in September 2024, there were 144 applications, 137 auditions, and 83 students admitted. The School also provides free advisory auditions to support prospective applicants.

A total of 263 places are funded through the Department for Education’s Music and Dance Scheme (MDS), which offers means-tested fee support. Additional bursaries were available for students not eligible for MDS or experiencing financial hardship. Choristers receive over 60% fee remission. The School remains committed to widening access to its specialist provision.

Academic outcomes remain strong. A-level results showed a 98% pass rate, with 60.3% achieving grades A*–B. At GCSE, 93.2% of grades were 9–4, with 51% at 7–9. Leavers’ destinations were diverse, with 80% progressing to music study—often with scholarships—at leading institutions including the Royal College of Music, Royal Academy of Music, RNCM, Guildhall, and Cambridge. Others pursued subjects such as Nursing, Engineering, and military careers.

The School delivered an extensive programme of musical activity, including three annual music courses, with a growing emphasis on diversity of repertoire and composers. International collaboration expanded through partnerships with institutions in Helsinki, Beijing, Oslo, and Barcelona.

Highlights include collaboration with the BBC Philharmonic, including recording a new work by Cassie Kinoshi for BBC Ten Pieces and live broadcast performances. There were also visits from distinguished alumni and professional musicians, including Wayne Marshall and Peter Moore. The School hosted international exchange students and developed reciprocal opportunities abroad as well as holding specialist events such as the Brass and Woodwind Academy Days, masterclasses, and student-led performance initiatives. Students performed regularly in a wide range of settings, including community venues such as ESSA Academy, broadening access to live orchestral music.

Major performance highlights included a full-scale production of Ravel’s L’Enfant et les sortilèges, involving the entire vocal department and large-scale staging; joint performances with the BBC Philharmonic as part of a new three-year partnership and concerts at major venues including Stoller Hall, Manchester Cathedral, and Victoria Hall, Bolton. There were also international performances, including a tour to Ischia, Italy. The School also maintained a rich calendar of concerts, ensemble performances, and outreach activity throughout the year.

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

A new three-year partnership with the BBC Philharmonic will provide further side-by-side performance opportunities. The School has also secured funding from the Association of British Orchestras to support programming of works by historical women composers.

Despite delays to the redevelopment of Whiteley Hall, performance activity has continued successfully across alternative venues. Following the academic year, the School hosted a range of residential programmes, including the Chetham’s Summer School, International Piano Summer School, and National Youth Concert Band, alongside external courses and events. These initiatives brought significant additional engagement to the campus.

Chetham’s Library

Chetham’s Library is widely recognised as the oldest surviving public library in the English speaking world, remaining in continuous use from its opening in 1655 to the present day. It forms a resource that has few parallels, being a major research library, heritage complex and arts organisation. Its significance has been recognized by Arts Council England through Designation of its collection as being of national and international importance.

Regular tours (Mon-Sat) are now the main source of income, supported by our team of volunteers. There also continues to be a wide range of activities during the year. In March we celebrated the 350[th] anniversary of Chetham’s opening with an open day as part of Heritage is Open supported by the National Lottery Fund. The Library also participated in Manchester Libraries Festival in June with an afternoon devoted to poetry in the collections, especially the poets who met at the Sun Inn on Long Millgate in the mid nineteenth century.

In February conservation work was undertaken on the Gorton Chest which included repair of recent damage to one of the doors and rehanging both doors as they were originally. One of the Library’s more significant medieval manuscripts was also conserved with support from a donation by Brenda and Arnold Bradshaw. The manuscript, a fifteenth century English astrological calendar, was in very poor state from heavy use and an unsuitable binding.

The Library works in partnership with the University of Manchester and other North West universities to support research and teaching with our collections. We are hosting an AHRC funded collaborative project on “Early Modern Reading Cultures in North West England” and have secured funding for a new project to start in October 2025 entitled “The Hidden Voices of Early Modern Books in Chetham’s Library”.

Fundraising for the Library’s work continues. The Patrons of Chetham’s Library scheme raised £387 this year (2024: £247).

Fundraising performance against objectives

During the year £626,675 (2024: £1,037,901) was donated or bequeathed to the Foundation. The Feoffees and School Governing Body have set general targets for the Development Department, both for unrestricted and restricted income and consider that the year’s results are more than satisfactory in the circumstances.

Chetham’s is registered with the Fundraising Regulator and is committed to delivering the Fundraising Promise, as outlined on the Fundraising Regulator’s website, and the high standards set for fundraising, as outlined in the Regulator’s Code of Fundraising. There were no complaints received by the charity for the purpose of fundraising.

The charity does not use third party canvassers for fundraisers and is mindful of the need to protect vulnerable people in any direct approaches to individuals.

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

Investment performance against objectives

The investment powers of the Foundation are subject to statutory provisions, in particular the Trustees Investments Act 2000.

The policy is to maintain income whilst preserving the real value of endowed investments and to maximise income on temporarily invested funds.

Rathbone Brothers PLC acting as Investment Managers have discretionary powers to manage the portfolio and their performance is monitored on a regular basis against agreed benchmarks by the Investment Sub-Committee. The Feoffees and School Governing Body consider that the year’s results are satisfactory.

The Foundation’s annualized total return on investment assets was a gain of £694,693 (2024: £843,114).

Investment income in the Hospital decreased during the year to £14,132 (2024: £33,979) and realised gains were £2,078 (2024: £84,678 losses).

Investment income in the School increased during the year to £214,541 (2024: £140,349) and realised investment gains were £84,783 (2024: £413,353 losses).

Investment income in the Library increased during the year to £96,841 (2024: £78,938) and realised investment gains were £67,136 (2024: £32,473).

Financial Review

The Foundation recorded an overall deficit on unrestricted funds of £490,012 (Restated 2024: £1,404,078) and its total Unrestricted Funds now stand at £8,368,092 (Restated 2024: £8,858,104).

The Hospital recorded a surplus on unrestricted funds for the year of £278,106 (2024: £363,919) and its total Unrestricted Funds now stand at £3,088,013 (2024: £2,809,907). This includes a deficit of £228,907 (2024: £228,907) in Designated Funds.

The School recorded a deficit on unrestricted funds for the year of £701,631 (Restated 2024: £1,771,370) and its total Unrestricted Funds now stand at £5,010,092 (Restated 2024: £5,711,723). This includes £451,610 (2024: £1,195,783) which is designated for a variety of specific purposes.

The Library recorded a deficit on unrestricted funds for the year of £66,487 (2024: surplus £3,373) and its total Unrestricted Funds now stand at £269,987 (2024: £336,474). This includes £110,000 (2024: £110,000) in Designated Funds.

Going concern

The Department for Education continues to support the school through the Music and Dance Scheme. Student places are oversubscribed and visitors to the Library and Stoller Hall continue to increase. The Feoffees and School Governors do not consider that there are any issues for the organisation as a going concern.

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

Reserves policy

Introduction

Notes 16 to 19 of the financial statements set out an analysis of the assets attributable to the various Funds together with a description of the major components of those Funds. These assets are sufficient to meet the financial obligations on a fund by fund basis.

The Hospital which owns the buildings, is primarily dependent on rent from the School for its income. The Feoffees aim to increase the balance of free reserves each year, to bring the level up to an amount felt to be appropriate in the circumstances. At the present time, the Feoffees' target for free reserves for the Hospital is equivalent to around a year's expenditure.

It is the policy of the School Governing Body to aim to increase reserves each year when there is no call on the reserves to cover unexpected costs. The Governing Body's aim is to bring the level of reserves to a higher level than at present to safeguard against income deterioration or unexpected costs.

The Feoffees and Library Committee aim to ensure that the free reserves of the Library cover approximately one year's expenditure.

Review of policies

These policies will be reviewed every three years by the Treasurer and Director of Finance and brought to the attention of the Feoffees and the School and Library Committees as part of the review of all policies. These policies were reviewed by the Resources Committee in December 2025.

Level of Reserves

Unrestricted reserves of the Foundation held at 31 August 2025 were £8,368,092 (Restated 2024: £8,858,104) of which £332,703 (2024: £1,076,876) is designated for specific purposes.

The unrestricted reserves are substantially invested in the tangible fixed assets of the Foundation. In the year to 31 August 2025 the surplus on free reserves increased to £8,035,389 (Restated 2024: £7,781,228).

Restricted reserves of the Foundation were £31,752,707 (2024: £32,810,998). Of this balance £28,035,944 (2024: £28,806,947) is represented by fixed assets.

Hospital

Free reserves of the Hospital are £3,316,920 (2024: £3,038,814).

Restricted reserves are £26,366,740 (2024: £27,190,481). Two (2024: two) capital project funds are in deficit at the year end by £1,785,340 (2024: £1,792,751) as expenditure has been incurred in advance of income being received for the projects.

School

Free reserves of the School are £4,558,482 (Restated 2024: £4,515,940). At present, the level of reserves is equivalent to over four month’s unrestricted expenditure. The Governors’ aim to increase the level of free reserves to at least 9 months’ expenditure, which at the current time would be approximately £9.9 million.

Restricted reserves are £5,355,732 (2024: £5,610,639) and are held for a variety of purposes.

Library

Free reserves of the Library are £159,987 (2024: £226,474). This is just over 9 months’ operating costs and is deemed to be sufficient at present.

Restricted reserves are £30,235 (2024: £9,878) and are held for a variety of purposes.

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Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

THE HOSPITAL AND LIBRARY IN MANCHESTER FOUNDED BY HUMPHREY CHETHAM ESQ AND INCORPORATED BY KING CHARLES II ANNUAL REPORT OF THE FEOFFEES For the year ended 31 August 2025

Plans for future periods

The Feoffees and School Governing Body aim to support continuation and progression of the excellent work carried out by the staff of the School and Library.

The Site Master Plan will continue as funding allows, with exciting exploratory work into river source heating. The current aim of the Feoffees and Governors is to source funding for repairs of the medieval buildings.

Disclosure of information to the auditors

So far as each person who was a Feoffee at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditors in connection with preparing their report, of which the auditors are unaware. Having made enquiries of fellow Feoffees and the charity’s auditors each Feoffee has taken all the steps that he or she is obliged to take as a Feoffee in order to make himself or herself aware of any relevant audit information and to establish that the auditors are aware of that information.

Statement of Feoffees’ responsibilities in respect of the financial statements

Charity law requires the Feoffees to prepare financial statements for each year which give a true and fair view of the charity’s financial activities during the year and the financial position at the end of the year. In preparing those financial statements, the Feoffees are required to:

The Feoffees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Feoffees on 30 June 2026

2026 and signed on their behalf by:

A. Gregory Chair of Feoffees M. Edge, Esq. Chair of School Governing Body

13

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

Independent Auditor’s Report to the Members of The Hospital and Library in Manchester Founded by Humphrey Chetham Esq and Incorporated by King Charles II

For the year ended 31 August 2025

Opinion

We have audited the financial statements of The Hospital and Library in Manchester Founded by Humphrey Chetham Esq and Incorporated by King Charles II (the ‘parent charity’) and its subsidiary (the ‘group’) for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the feoffees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the feoffees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The feofees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

14

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

Independent Auditor’s Report to the Members of The Hospital and Library in Manchester Founded by Humphrey Chetham Esq and Incorporated by King Charles II For the year ended 31 August 2025

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

 the information given in the Feofees’ Annual Report is inconsistent in any material respect with the financial statements; or

Responsibilities of Feoffees

As explained more fully in the Feofees’ Responsibilities Statement set out on page 13, the feoffees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the feoffees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the feoffees are responsible for assessing the group and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the feoffees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the group and parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the feoffees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charity by discussions with feoffees and updating our understanding of the sector in which the group and parent charity operate.

Laws and regulations of direct significance in the context of the group and parent charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.

15

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

Independent Auditor’s Report to the Members of The Hospital and Library in Manchester Founded by Humphrey Chetham Esq and Incorporated by King Charles II

For the year ended 31 August 2025

Auditor’s responsibilities for the audit of the financial statements (continued)

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the parent charity’s feoffees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the parent charity feoffees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charity and the parent charity’s feoffees as a body, for our audit work, for this report, or for the opinions we have formed.

Saffery LLP

Statutory Auditors 71 Queen Victoria Street London EC4V 4BE

Date: 30 June 2026

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

16

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 August 2025

----- Start of picture text -----
Notes Hospital Funds School Funds Library Funds 2025 Restated 2024
£ £ £ £ £
Income from:
Charitable activities:
School fees 2 - 11,207,362 - 11,207,362 10,234,331
Ancillary activities 6 45,124 1,250,806 - 1,295,930 1,125,325
Other trading activities:
Activities for generating funds 3 - 794,503 123,942 918,445 915,221
Investments:
Investment income 4 14,132 214,541 96,841 325,514 253,266
Voluntary sources:
Bequests and donations 5 7,423 585,333 33,919 626,675 1,037,901
Grants received - 45,680 - 45,680 11,418
Total incoming resources 66,679 14,098,225 254,702 14,419,606 13,577,462
Expenditure on:
Raising funds:
Fundraising - 202,759 - 202,759 231,285
Publicity - 21,293 - 21,293 60,281
Conference, facility hire and trading costs - 955,963 - 955,963 837,859
Financing costs 88,639 6,723 - 95,362 128,130
Investment management costs 3,267 38,573 16,655 58,495 58,620
91,906 1,225,311 16,655 1,333,872 1,316,175
Charitable activities:
Teaching costs – academic - 2,379,500 - 2,379,500 2,369,482
Teaching costs – music - 4,345,266 - 4,345,266 4,419,713
Welfare - 2,133,200 - 2,133,200 2,067,341
Premises 1,132,954 3,618,706 - 4,751,660 4,609,921
Scholarships and Bursaries - 800,417 - 800,417 619,160
Grants, awards and prizes - 10,471 - 10,471 8,600
Library running costs - - 202,484 202,484 214,616
Support and Governance costs 10,852 220,764 2,094 233,710 144,518
1,143,806 13,508,324 204,578 14,856,708 14,453,351
Total resources expended 9 1,235,712 14,733,635 221,233 16,190,580 15,769,526
Net income/(expenditure) (1,169,033) (635,410) 33,469 (1,770,974) (2,192,064)
Transfer between funds 10 627,000 (627,000) - - -
Realised gains and losses 12 2,078 84,783 67,136 153,997 (465,558)
Unrealised gains and losses 12 3,080 221,089 (8,987) 215,182 1,055,406
Net movement in funds (536,875) (956,538) 91,618 (1,401,795) (1,602,216)
Fund balances at 1 September 2024 as
30,832,331 11,688,351 3,130,463 45,651,145 46,887,372
previously stated
Restatement of opening balances 1 September - - -
2024 (365,989) (365,989)
Fund balances brought forward at 1 September
30,832,331 11,322,362 3,130,463 45,285,156 46,887,372
2024 restated
Fund balances at 31 August 2025 30,295,456 10,365,824 3,222,081 43,883,361 45,285,156
----- End of picture text -----

17

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II BALANCE SHEETS As at 31 August 2025

Note
Fixed assets
Heritage assets
11
Tangible fixed assets
11
Investments
12
Investments in subsidiaries
Current assets
Stock
Debtors
13
Cash at bank and in hand
Creditors:amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one
year
15

Total net assets
16
Endowment funds
17
Restricted funds
18
Unrestricted funds
19
Total funds
Hospital funds
School funds
Library funds
Total funds
16		 GROUP
2025
£
Restated
2024
£
115,000
115,000
31,729,306
32,640,041
11,100,222
10,910,767
-
-
42,944,528
43,665,808
16,322
7,082
725,532
438,635
3,400,113
4,123,892
4,141,967
4,569,609
(3,203,134)
(2,950,261)
938,833
1,619,348
43,883,361
45,285,156
-
-
43,883,361
45,285,156
3,762,562
3,616,054
31,752,707
32,810,998
8,368,092
8,858,104
43,883,361
45,285,156
30,295,456
30,832,331
10,365,824
11,322,362
3,222,081
3,130,463
43,883,361
45,285,156		 CHARITY
2025
£
Restated
2024
£
115,000
115,000
31,729,306
32,640,041
11,100,222
10,910,767
200
200
42,944,728
43,666,008
9,240
-
1,157,622
1,897,583
2,857,977
3,116,661
4,024,839
5,014,244
(2,940,018)
(3,401,849)
1,084,821
1,612,395
44,029,549
45,278,403
-
-
44,029,549
45,278,403
3,762,562
3,616,054
31,752,707
32,810,998
8,514,280
8,851,351
44,029,549
45,278,403
30,302,536
30,839,411
10,504,932
11,308,529
3,222,081
3,130,463
44,029,549
45,278,403

The financial statements were approved and authorised for issue by the Feoffees on and signed on their behalf by:

A. Gregory Chair of Feoffees

M. Edge, Esq Chair of School Governing Body

30 June 2026 2026

18

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 August 2025

Cash flow
statement
notes
2025
Net cash inflow/(outflow) from operations
£
Net cash provided by/(used by) operating activities
1
(626,640)
Cash flows from investing activities
Investment income
325,514
Payments to purchase buildings and other fixed assets
(288,333)
Payments to acquire investments, including cash awaiting investment
(1,222,585)
Receipts from sales of fixed asset investments
1,291,005
Increase in cash held by investment advisors
111,304
Net cash provided by/(used in) investing activities
216,905
Cash flow from financing activities
Bank loan and interest payable
(95,362)
Bank loan repayments
(218,682)
Net cash used in financing activities
(314,044)
Change in cash and cash equivalents in the reporting period
(723,779)
Cash and cash equivalent at the beginning of the period
4,123,892
Cash and cash equivalent at the end of the period
2
3,400,113		 2024
£
(2,406,050)
253,266
(490,486)
(3,442,730)
2,917,096
183,040
(579,814)
(128,130)
(124,706)
(252,836)
(3,238,700)
7,362,592
4,123,892		 2024
£
(2,406,050)
253,266
(490,486)
(3,442,730)
2,917,096
183,040
(579,814)
(128,130)
(124,706)
(252,836)
(3,238,700)
7,362,592
4,123,892
4,123,892

19

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE CASH FLOW STATEMENT For the year ended 31 August 2025

1. Reconciliation of net expenditure to net cash flow from operating activities

Net incoming/(outgoing) resources
Depreciation
Investment income
Bank and loan interest payable
(Increase)/Decrease in stock
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Net cash inflow/(outflow) from operating activities		 2025
£
Restated
2024
£
(1,770,974)
(2,192,064)
1,199,068
1,254,039
(325,514)
(253,266)
95,362
128,130
(9,240)
(7,082)
(286,897)
397,515
471,555
(1,733,322)
(626,640)
(2,406,050)

2. Analysis of cash and cash equivalent

Cash at bank and in hand
Cash on deposit		 2025
£
1,835,218
2024
£
4,082,782
1,564,895
41,110
3,400,113
4,123,892

3. Reconciliation of net debt

Cash at bank and in hand
Bank loan due in less than one year
Bank loan due in greater than one year		 Restated
At 1 September
2024
Cash
movements
Non-cash
movements
At 31 August
2025
£
£
£
£
4,123,892
(723,779)
3,400,113
(1,499,468)
218,682
-
(1,280,786)
-
-
-
-
2,624,424
(505,097)
-
2,119,327

20

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

1. Statement of accounting policies

Basis of preparation of accounts

The consolidated financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities Act 2011 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - effective 1 January 2019.

The accounts present the Consolidated Statement of Financial Activities (SOFA), the Consolidated Cash Flow Statement, and the Consolidated and Charity Balance Sheets, comprising the consolidation of the Charity with its wholly owned subsidiaries.

No separate charity only Statement of Financial Activities has been prepared by the Charity. The Charity’s total income for the year was £13,625,102 (Restated 2024: £13,386,636) and the net (expenditure) / income for the year was -£1,248,854 (Restated 2024: -£1,763,227).

The Foundation has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement within the consolidated financial statements. The functional currency of the Foundation is considered to be GBP because that is the currency of the primary economic environment in which the Foundation operates.

The accounts are drawn up on the historical cost basis of accounting, as modified by the revaluation of investment properties and other investments.

The Foundation is a Public Benefit Entity registered as a charity in England and Wales. It is registered as a charity on the Charity Commission website (charity number: 526702).

No material uncertainties that may cast significant doubt about the ability of the Foundation to continue as a going concern have been identified by the Feoffees or School Governing Body.

A significant proportion of fee income for the School is receivable from the Department for Education (DfE) under the Music and Dance Aided Pupil Scheme (MDS). In the current year £7,697,243 was receivable (2024: £7,339,609). The DfE have provided assurances to the School that they foresee the MDS Scheme being continued in its current form for the foreseeable future.

21

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

1. Statement of accounting policies (continued)

Uniting direction

A Uniting Direction was issued by the Charities Commission on 25 June 2004. This links the Chetham’s Hospital, School and Library charitable strands for the purposes of registration and accounting under the Charities Act 2011. The Charity Commission has agreed to the adapted format of the Statement of Financial Activities wherein funds are categorised by component charitable strand rather than by type.

Chetham’s Hall Limited is a subsidiary undertaking that is a wholly owned subsidiary of the Hospital. Chetham’s Trading Limited is a subsidiary undertaking that is a wholly owned subsidiary of the School. The results of the subsidiaries are included within the relevant component strands of the overall charity.

Fees and similar income

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 stated after deducting Bursaries granted by the School, but include contributions received from Restricted Funds towards fees.

Donations and bequests

Donations and bequests received for the general purposes of the Foundation are credited to unrestricted funds. Donations and bequests subject to specific wishes of the benefactors are credited to restricted funds, or to endowment funds where the amount is required to be held as permanent capital.

Donations and bequests are accounted for as and when entitlement arises, the amount can be reliably qualified and the economic benefit to the school is considered probable.

Investment and covenant income

Credit is taken for investment and covenant income, including related taxation, on an accruals basis. The income from COIF Accumulation units is automatically reinvested and this income is not disclosed as such in the accounts because there is a corresponding increase in the valuation of the original subscribed units.

Resources expended

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer- term liabilities. Overheads and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the proportions of individuals’ time attributable to that activity in the year. The irrecoverable element of VAT is included with the item of expense to which it relates.

Governance costs comprise the costs of running the charity, including strategic planning for 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 of the Feoffees, the School Governing Body and the Library Committee and of preparing statutory accounts 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 policy for the acquisition, preservation, management and disposal of its heritage assets.

College House and the Collections are deemed to have indeterminate lives and therefore the Feoffees do not consider it appropriate to charge depreciation.

22

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

1. Statement of accounting policies (continued)

College House

The site of Chetham’s, on a sandstone outcrop at the confluence of the Rivers Irwell 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 to 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.

The Library’s Collections (Heritage assets)

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 thirteenth century Flores Historiarum of Matthew Paris. The Collections are mainly concerned with the history of the North West of England and include the first ever census of Manchester compiled in 1773-74. There are well over 120,000 printed items, over half of which were published before 1850.

It is considered that obtaining valuations for the vast majority of the Collections would involve disproportionate cost due to the size and diversity of the items and so 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 discernible, 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 fixed 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.

Preservation costs

Expenditure which, in the Feoffees’ view, is required to preserve or clearly prevent further deterioration of College House or individual Collection items is recognised in the Statement of Financial Activities when it is incurred.

Other assets

The cost of freehold buildings which are not classed as heritage assets is written off by annual instalments over their expected useful lives as follows:

23

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

1. Statement of accounting policies (continued)

Freehold buildings: 40 - 60 years

The cost of the land acquired in 2008 is not written off but is kept in the accounts as a capital item matched by a restricted Capital Fund as its purchase was funded by a grant from the NWDA for that specific purpose.

Expenditure on instruments, furniture and equipment etc. costing less than £1,000 is 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 instalments to their estimated residual values based current market prices over their expected useful lives as follows:

Furniture, fittings and equipment: 5 years Instruments: 3 years

Grants received towards capital expenditure are credited to the appropriate restricted fund upon entitlement thereto; any depreciation of the grant-funded proportion of such fixed assets expenditure is charged to the related restricted fund.

Investments

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 Activities.

Investment in subsidiaries are valued at cost less provision for impairment.

24

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

1. Statement of accounting policies (continued)

Pension schemes

Contributions are made to the multi-employer defined benefit Teachers’ Pension Scheme at rates set by the Scheme Actuary and advised by the Scheme Administrator. Contributions are also made to the Greater Manchester Pension Fund, a multi-employer defined benefit pension scheme, for a small number of non-teaching 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.

Operating leases

Rentals applicable to operating leases are charged to the Statement of Financial Activities as they fall due.

Taxation

As a registered charity, the Foundation and its associated funds are not subject to taxation on its surpluses. However, provision is made for corporation tax on any trading profits generated by Chetham’s Hall Limited and Chetham’s Trading Limited after provision for Gift Aid payment.

Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised 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 doubt. Cash at bank and in hand is defined as 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 currency are translated to GBP at the balance sheet date at an appropriate year end exchange rate.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, Feoffees and School Governors as trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily 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 estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised 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 periods if the revision affected current and future periods.

In the view of the Feoffees and School Governors, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

25

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

2. School fees

Gross fees receivable
Less: total Bursaries, grants and allowances
Scholarships and Bursaries financed from restricted and
endowment funds
The total educational awards financed from restricted funds
comprise:
Scholarships and Bursaries
Grants, awards and prizes
3.
Other trading activities
Trading income, summer schools and facility hire		 2025
£
Restated 2024
£
11,207,362
10,234,331
(800,417)
(619,160)
10,406,945
9,615,171
800,417
619,160
11,207,362
10,234,331
2025
2024
800,417
619,160
10,471
8,600
810,888
627,760
2025
£
2024
£
918,445
915,221

Trading income includes £794,503 (2024: £817,865) in relation to Chetham’s Trading Limited.

The School owns the whole of the ordinary share capital, consisting of 100 ordinary shares of £1 each, of Chetham’s Trading Limited, which carries out the commercial activities of the School. The subsidiary donates the taxable profits of the previous year to the School each year through Gift Aid. Its trading results for the year, as extracted from the audited financial statements, are summarised below. The registered office of this entity is the same as for the School.

Turnover
Cost of Sales
Gross (loss)/profit
Administrative expenses
Operating (loss)/profit
Retained earnings brought forward
Gift aid to parent company
Retained earning carried forward		 2025
£
794,503
(859,433)
(64,930)
(74,280)
(139,210)
13,733
(13,733)
(139,210)		 2024
£
817,865
(772,172)
45,693
(31,960)
13,733
150,102
(150,102)
13,733

26

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

4. Investment income

Income from UK listed investments (gross)
Interest on funds deposited on bank reserve
accounts		 2025
£
283,285
42,229

325,514		 2024
£
252,138
1,128
253,266

5. Bequests and donations

During the year significant bequests and donations were gratefully received from the following:

The Estate of the late J Gilbert, the Estate of the late D Blamires, Purposeful Ventures, The Leverhulme Trust, The Oglesby Charitable Trust, The LHR Charitable Foundation, The Haworth Trust, The Zochonis Charitable Trust, The Albert and Eugenie Frost Charitable Trust CIO, Hulme Trust Estates, The Beaverbrooks Charitable Trust, Association of British Orchestras (Sirens Fund), Mr D Gaskill, Mr & Mrs B & N Doyle, Mr & Mrs P & J Folkman, Mr & Mrs P & R Jackson. Donations and bequests were also received from many other sources and the Feoffees and School Governors wish to express their sincere gratitude to all donors.

6.

Ancillary activities

Charitable activities
Concert income
Summer Music School
Piano Summer School
Sundry income
Insurance claims		 2025
£
9,798
115,490
322,920
40,577
807,145
1,295,930		 2024
£
7,960
28,097
306,400
82,868
700,000
1,125,325

7.

Expenditure

2025 2024
£ £
Charitable expenditure includes:
Depreciation of fixed assets 1,199,068 1,254,038
Auditors’ remuneration: audit services 38,145 24,390
Non-audit services (5,050) 6,322
Operating lease costs 30,256 30,659

The above excludes rent of £627,000 (2024: £627,000) paid by Chetham’s School of Music to Chetham’s Hospital which is eliminated by way of transfers between funds (note 10).

27

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

8. Employment costs

Wages and salaries
Social security costs
Pension contributions		 2025
£
6,951,140
699,922
1,168,247
8,819,309		 2024
£
7,006,031
631,217
1,122,773
8,760,021

The average monthly number of employees in the year was 334 (2024: 339) of which 150 (2024: 164) were teaching staff.

The key management personnel comprise the two Joint Principals, the Director of Finance, and Chetham’s Librarian.

The total employment benefits of the key management personnel were £488,579 (2024: £463,317). Total employment benefits include gross salaries, employer’s National Insurance Contributions, employer’s pension contributions, benefits in kind and Class 1A National Insurance Contributions on those benefits in kind.

During the year, there were Feoffees expenses totalling £456 (2024: £Nil).

The number of employees whose emoluments exceeded £60,000 was as follows:

2025 2024
No. No.
£60,001 to £70,000 14 18
£70,001 to £80,000 9 9
£80,001 to £90,000 6 3
£90,001 to £100,000 4 3
£100,001 to £110,000 4 2

Contributions paid in the year for the provision of defined benefit schemes for higher paid employees were £482,999 (2024: £401,031) and for money purchase pension schemes for higher paid employees were £78,911 (2024: £51,651). There are 8 (2024 – 6) higher paid employees to whom retirement benefits are accruing under money purchase schemes and 29 (2024: 29) higher paid employees in defined benefit schemes.

28

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2025

9. Analysis of total resources expended

Cost of generating funds
Fundraising
Publicity
Conference, facility hire and
trading costs
Financing costs
Investment management costs
Charitable activities
Teaching costs – academic
Teaching costs - music
Welfare
Premises
Scholarships & Bursaries
Grants, awards & prizes
Library costs
Governance costs		 Staff
costs
£
Other
costs
£
139,754
63,005
-
21,293
483,442
472,521
95,362
-
58,495		 Depreciation
£
Total
2025
£
Total
2024
£
-
202,759
231,285
-
21,293
60,281
-
-
955,963
95,362
837,859
128,130
-
58,495
58,620
623,196
710,676		 -
1,333,872
1,316,175
2,149,282
230,218
3,899,572
445,694
983,443
1,149,757
992,230
2,560,362
-
800,417
-
10,471
170,012
32,472		 -
2,379,500
2,369,482
-
4,345,266
4,419,713
-
2,133,200
2,067,341
1,199,068
4,751,660
4,609,921
-
800,417
619,160
-
10,471
8,600
-
202,484
214,616
8,194,539
5,229,391		 1,199,068
14,622,998
14,308,833
1,574
232,136		 -
233,710
144,518
1,199,068
16,190,580
15,769,526
8,819,309
6,172,203

Conference and facility hire includes £Nil (2024: £2,824) in relation to Chetham’s Hall Limited and £951,433 (2024: £772,172) in relation to Chetham’s Trading Limited.

29

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

9. Analysis of total resources expended (continued)

Total resources expended is £1,233,775 (2024: £1,177,477) in respect of support costs detailed below, that have been allocated to the above expense headings.

Support Costs
Management
Administration
Recruitment
Office costs
IT
Legal and professional
Insurance		 Hospital
£
School
£
Library
£
Total
2025
£
Total
2024
£
-
100,072
-
100,072
276,204
-
392,119
170,012
562,131
355,365
-
34,853
-
34,853
38,239
-
46,082
3,111
49,193
3,481
444
82,695
13,730
96,869
148,763
10,378
84,156
-
94,534
186,924
171,338
124,785
-
296,123
168,501
182,160
864,762
186,853
1,233,775
1,177,477

10. Transfers between funds

Hospital
Rent from School
School
Rent paid to Hospital
TOTAL		 Unrestricted Funds
Restricted
Endowment
Total
General
£
Designated
£
Funds
£
Funds
£
Funds
£
627,000
-
-
-
627,000
627,000
-
-
-
627,000
(627,000)
-
-
-
(627,000)
(627,000)
-
-
-
(627,000)
-
-
-
-
-

30

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

11. Tangible fixed assets

Group and Charity

Cost:
At 1 September 2024
Additions
At 31 August 2025
Depreciation:
At 1 September 2024
Charge for the year
At 31 August 2025
Net book value:
At 31 August 2025
At 1 September 2024		 Heritage
Freehold
Furniture,
Assets
£
Property
£
Fittings,
Plant &
Equipment
£
Instruments
£
Total
£
115,000
45,474,619
1,115,028
667,575
47,372,222
-
101,210
187,123
-
288,333
115,000
45,575,829
1,302,151
667,575
47,660,555
-
13,361,028
831,201
424,952
14,617,181
-
955,786
100,303
142,979
1,199,068
-
14,316,814
931,504
567,931
15,816,249
115,000
31,259,015
370,647
99,644
31,844,306
115,000
32,113,591
283,827
242,623
32,755,041

The cost of tangible fixed assets includes the cost of land at Walkers Croft, which was purchased in March 2008 with the support of a grant from the North West Development Agency (NWDA). This piece of land is secured by legal charges in favour of NatWest as security for the 2011 bank loan.

The Heritage assets are predominantly the Library Collection as in Note 1. There were no heritage asset additions or donations during the year (2024: none).

31

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

12. Investments

Group and Charity

Restricted Unrestricted Endowment
Funds Funds Funds Total
£ £ £ £
Balance at 1 September 2024 5,882,399 1,421,978 3,606,390 10,910,767
Additions 628,219 160,735 433,631 1,222,585
Disposals (626,423) (182,153) (328,432) (1,137,008)
Revaluation gains/(losses) 192,732 34,832 (12,382) 215,182
Change in amounts awaiting
investment (38,407) (6,636) (66,261) (111,304)
Balance at 31 August 2025 6,038,520 1,428,756 3,632,946 11,100,222
Historical cost of listed
investments		 4,416,355 1,534,025 2,627,454 8,577,834
Listed on stock exchange 6,000,113 1,422,120 3,566,685 10,988,918
Cash holding 38,407 6,636 66,261 111,304
6,038,520 1,428,756 3,632,946 11,100,222

All investments are held to provide an investment return.

13. Debtors

Debtors – Fees
Other debtors
Prepayments
Accrued income
Amounts due from group undertakings		 Group
2025
£
257,088
147,061
62,262
259,121
-
725,532		 Restated
Group
2024
£
284,244
47,899
106,492
-
-
438,635		 Charity
2025
£
257,088
108,530
51,673
6,305
734,026
1,157,622		 Restated
Charity
2024
£
223,328
47,664
95,655
-
1,530,936
1,897,583

A total of £21,123 (2024: £Nil) was written off in the year for bad debts and a £Nil increase was made in the provision (2024: £Nil).

32

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

14. Creditors: amounts falling due within one year

14.
Creditors:amounts falling due within one year
Trade creditors
Accruals
Social security and other taxes
Other creditors
Amounts due to group undertakings
Bank loans
15.
Creditors:amounts falling due after more than one year
Bank loans		 Group
2025
£
941,175
267,530
224,617
489,026
-
1,280,786		 Restated
Group
2024
£
615,323
84,933
38,662
711,875
-
1,499,468		 Charity
2025
£
849,214
114,494
210,407
305,684
179,433
1,280,786		 Restated
Charity
2024
£
612,698
-
14,999
611,001
663,683
1,499,468
3,203,134
Group
2025
£
-
-		 2,950,261
Restated
Group
2024
£
-
-		 2,940,018
Charity
2025
£
-
-		 3,401,849
Restated
Charity
2024
£
-
-

A bank loan of £3,000,000 was taken out in May 2011 for a 20 year period to help to finance the construction of the New School Building. The loan interest is fixed at 6.4% for the life of the loan.

The loan is secured by first legal mortgages over the freehold land on the north side of Long Millgate, Manchester and over the freehold property of the Hospital and Library, together with the land on Walkers Croft where the New School Building is situated.

The total bank loans outstanding at 31 August 2025 amounted to £1,280,786 (2024: £1,499,468).

The charity breached a covenant attached to its bank loan facility. As a result of the breach, the lender had the contractual right to demand immediate repayment of the outstanding balance at the reporting date. In accordance with FRS 102, the outstanding loan balance of £1,280,786 (Restated 2024: £1,499,468) has been classified as a current liability in the balance sheets.

Subsequent to the year end, the charity engaged with the lender regarding the covenant breach. On 6 January 2026, the lender confirmed that the agreement will continue as originally agreed. As at the date the financial statements were authorised for issue, the covenant breach had not been formally remedied and no waiver had been received from the lender, however the lender has agreed not to exercise its right in relation to the breach to demand repayment of the loan and all other sums payable under the agreement.

33

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

16. Allocation of the charity’s net assets

The net assets are held for the various funds as follows:

Group
Hospital
Unrestricted
Restricted
Endowment
School
Unrestricted
Restricted
Library
Unrestricted
Restricted
Endowment
Total
Unrestricted
Restricted
Endowment		 Fixed
Assets
Investments
Net current
assets/
(liabilities)
Long term
liabilities
Total
£
£
£
£
£
1,761,300
-
1,326,713
-
3,088,013
28,035,944
399,463
(2,068,667)
-
26,366,740
-
807,042
33,661
-
840,703
29,797,244
1,206,505
(708,293)
-
30,295,456
1,932,062
1,399,256
1,678,774
-
5,010,092
-
5,639,057
(283,325)
-
5,355,732
-
1,932,062
7,038,313
1,395,449
-
10,365,824
115,000
29,500
125,487
-
269,987
-
-
30,235
-
30,235
-
2,825,904
95,955
-
2,921,859
115,000
2,855,404
251,677
-
3,222,081
3,808,362
1,428,756
3,130,974
-
8,368,092
28,035,944
6,038,520
(2,321,757)
-
31,752,707
-
3,632,946
129,616
-
3,762,562
31,844,306
11,100,222
938,833
-
43,883,361

34

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2025

16. Allocation of the charity’s net assets (continued)

Charity
Hospital
Unrestricted
Restricted
Endowment
School
Unrestricted
Restricted
Library
Unrestricted
Restricted
Endowment
Total
Unrestricted
Restricted
Endowment		 Fixed
Assets
Investments
Net current
assets/
(liabilities)
Long term
liabilities
Total
£
£
£
£
£
1,761,300
100
1,333,693
-
3,095,093
28,035,944
399,463
(2,068,667)
-
26,366,740
-
807,042
33,661
-
840,703
29,797,244
1,206,605
(701,313)
-
30,302,536
1,932,062
1,399,356
1,817,782
-
5,149,200
-
5,639,057
(283,325)
-
5,355,732
-
1,932,062
7,038,413
1,534,457
-
10,504,932
115,000
29,500
125,487
-
269,987
-
-
30,235
-
30,235
-
2,825,904
95,955
-
2,921,859
115,000
2,855,404
251,677
-
3,222,081
3,808,362
1,428,956
3,276,962
-
8,514,280
28,035,944
6,038,520
(2,321,757)
-
31,752,707
-
3,632,946
129,616
-
3,762,562
31,844,306
11,100,422
1,084,821
-
44,029,549

17. Endowment funds

Group and Charity

Hospital
Investment
Replacement Sinking
Funds
EF Jacob Endowment
Fund
Library
Grants from Heritage
Lottery Fund
Total		 Balance at 1
September
Incoming
Resources
Investment
Transfers
between
Balance at
31 August
2024
Resources
expended
gains/(losses)
funds
2025
£
£
£
£
£
£
686,360
5,789
-
2,971
-
695,120
145,583
-
-
-
-
145,583
831,943
5,789
-
2,971
840,703
2,784,111
96,841
(16,655)
57,562
-
2,921,859
3,616,054
102,630
(16,655)
60,533
-
3,762,562

35

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

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 to 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 during the year to 31[st ] August 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 to unrestricted reserves.

Library

Endowment Fund

The Heritage Lottery Fund grants were given in order to provide substantially improved investment income and thereby to enable improved facilities in the Library. Accordingly, investment income and realised gains, together with expenditure therefrom, are included as part of General Fund movements in the Statement of Financial Activities.

36

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

18. Restricted funds

Group and Charity
Hospital
Capital Fund - Millgate Extension
Capital Fund - New Land
Capital Fund - New School Building
Capital Fund – Nicholls Conversion
Capital Fund – Concert Hall
Improvements Fund
New School Development Fund
Concert Hall Fund
Instrument Fund
Nicholls Fund
Miscellaneous Fund
School
Vernon Farley Fund
Hazel Smith Fund
Ida Carroll Fund
Hospital Prize Fund
Kolbert Music Prize Fund
Academic Prizes Fund
Music Prizes Fund
David Hartigan Memorial Piano
Fund
Neil Vint Bursary Fund
Milne Fund
Bursary Fund
Bateson Family Bursary Fund
Leverhulme Trust Bursary Fund
Oglesby Bursary Fund
2022 matches Funding Bursary
Fund
Tony and Tania Music Prize Fund
Hospitallers Camp Fund
Mellor Endowment Fund
Amy Watson Endowment Fund
Stoller Bursary Fund
Ethel Kerry Bursary Fund
Hardship Fund
Co-op Fund
Miscellaneous Restricted Fund
Opera Vocal Course
David Gaskill Fund
Friends of Chetham's Fund
Chets in London Fund
Stoller Hall Fund
50thAnniversary Fund
Confucius Classroom Fund
Piano Summer School Fund
Capital Fund - Instruments
Grants and Other Income Fund
Leverhulme Trust Summer School
Bursary		 Balance at 1
Incoming
Resources
Transfers
between
Investment
gains/
Balance at 31
September 2024
resources
expended
funds
(losses)
August 2025
£
£
£
£
£
£
816,516
-
(39,670)
-
-
776,846
4,500,000
-
-
-
-
4,500,000
16,408,975
-
(585,832)
-
-
15,823,143
542,409
-
(18,506)
-
-
523,903
6,457,048
-
(197,664)
-
-
6,259,384
22,569
-
-
-
-
22,569
(1,595,765)
7,411
-
-
-
(1,588,354)
(196,986)
-
-
-
-
(196,986)
202,820
8,333
-
-
2,187
213,340
32,601
-
-
-
-
32,601
294
-
-
-
-
294
27,190,481
15,744
(841,672)
-
2,187
26,366,740
12,287
-
(600)
-
-
11,687
-
-
-
-
-
-
(2,769)
-
(3,000)
-
-
(5,769)
81,525
-
(1,545)
-
-
79,980
1,968
-
-
-
-
1,968
325
-
-
-
-
325
101
1,338
-
-
(1,795)
-
-
-
-
-
(1,694)
1,338
29,570
-
(1,000)
-
-
28,570
247,103
-
(309)
-
-
246,794
2,107,217
134,639
(349,755)
-
257,017
2,149,118
595,309
-
-
-
-
595,309
19,046
80,000
(99,046)
-
-
-
3,255
18,796
-
5,146
-
-
-
-
-
-
3,255
23,942
5,000
-
-
-
-
5,000
9,613
-
-
-
-
9,613
5,345
-
-
-
-
5,345
24,551
-
-
-
-
24,551
14,304
-
-
-
-
14,304
1,620,222
65
(322,317)
-
-
1,297,970
55,945
5,496
(22,965)
-
-
38,476
415
-
-
-
-
415
95,912
7,500
3,190
-
(250)
-
-
-
-
-
98,852
7,500
32,084
25,000
-
-
-
57,084
19,522
925
-
-
-
20,447
2,339
-
-
-
-
2,339
40,127
-
-
-
-
40,127
34,758
-
(3,056)
-
-
31,702
114,892
3,620
(5,025)
-
-
113,487
235,872
-
(860)
-
-
235,012
7,083
-
-
-
-
7,083
170,084
45,680
(4,162)
-
-
211,602
-
-
-
-
-
-
5,610,639
303,761
(815,685)
-
257,017
5,355,732

37

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2025

18. Restricted funds (continued)

Library
J Paul Getty Fund
Miscellaneous Restricted Fund
Library Patrons Fund
Arts and Heritage Fund
Heritage Compass Fund
Conservation Project Fund
Peter Folkman Fund
Total		 Balance at 1
Transfers
Balance at
September
Incoming
Resources
Between
Investments
31 August
2024
resources
expended
funds
gains/(losses)
2025
£
£
£
£
£
£
-
-
-
-
-
-
1,710
-
-
-
-
1,710
138
387
-
-
-
525
2,470
-
-
-
-
2,470
710
-
-
-
-
710
4,850
-
-
-
-
4,850
-
20,000
(30)
-
-
19,970
9,878
20,387
(30)
-
-
30,235
32,810,998
339,892
(1,657,387)
-
259,204
31,752,707

38

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

18. Restricted funds (continued)

Hospital

Building Funds

Capital Fund - Millgate Extension

A fund which represents the depreciated capital cost of the Millgate Extension.

Capital Fund – New Land

A fund which represents the capital value of the new land purchased in 2008 (note 11).

Capital Fund – New School Building

A fund which represents the depreciated capital value of the New School Building.

Capital Fund – Nicholls Conversion

A fund which represents the depreciated capital value of the Nicholls Conversion.

Capital Fund – Concert Hall

A fund which represents the depreciated capital value of the Concert Hall.

Improvements Fund

A fund established from the proceeds of donations from a major anonymous Trust, for use at the discretion of 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 2025 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 Fund.

Concert Hall Fund

A fund established for the construction of the School’s New Concert Hall. This fund is in deficit at 31 August 2025 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 School’s Unrestricted Fund.

Other Funds

Instrument Fund

A fund established to give financial assistance to parents of students at the School wishing to purchase new instruments.

Nicholls Fund

A fund that can be used either to give hardship awards to parents in financial difficulties, or towards the maintenance of the Foundation’s buildings.

Miscellaneous Restricted Fund

This fund comprises various miscellaneous and small funds, to be used for a variety of charitable purposes.

39

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

Restricted funds (continued)

School

Vernon Farley Fund

A fund established in order to make annual prizes for piano-playing and sight-reading.

Hazel Smith Fund

A prize or Bursary awarded annually to 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.

Hospital Prize Fund, Kolbert Music Prize Fund, Academic Prizes Fund, Music Prizes Fund

Prizes awarded to students each Speech Day under the terms of a variety of trust funds established by various donors.

David Hartigan Memorial Piano Fund

A fund established in order to make annual awards to deserving piano students of Chetham’s School.

Neil Vint Bursary Fund

A Bursary awarded annually to former students of Chetham’s School aged between 18 and 25, to help develop their careers.

Milne Fund

This fund was established to help students in financial difficulty and to support the development of the School’s facilities.

Bursary Fund

This fund was established to help students who are in need of financial assistance.

Bateson Family Bursary Fund

A fund established for the estate of the late Michael Bateson to provide Bursaries for students at the School who are in financial need.

Andrew Lloyd Webber Foundation Bursary Fund

A fund established to support students at Chetham’s who require financial assistance.

Leverhulme Trust Bursary Fund

A fund established to support students at Chetham’s who require financial assistance.

Oglesby Bursary Fund

A fund established by the Oglesby Charitable Trust, providing Bursary support to Chetham’s students.

2022 Matched Funding Bursary Fund

A fund established to support Ukrainian students at the school.

Tony and Tania Music Prize Fund

A fund established to provide Bursary support to school students.

Hospitallers “Camp” Fund

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

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

18. Restricted funds (continued)

John Shaw Bursary Fund

A fund to provide Bursary support to students from Lancashire or Yorkshire.

Stoller Bursary Fund

A fund established by the Stoller Charitable Trust to support students who live in Oldham.

Ethel Kerry Bursary Fund

A fund established from the estate of the late Ethel Kerry, to provide Bursaries for students who live in Lancashire, Yorkshire, Cumbria and Scotland.

Hardship Fund

A fund established to provide support to students at the School who are in financial need.

Co-op Fund

A fund established to help the School.

Miscellaneous Restricted Fund

This fund comprises miscellaneous small restricted funds for a variety of uses.

David Gaskill Fund

A fund established for 2024/25 and 2025/26 to support creative engagement projects (specifically online workshops, increasing participation and skills development).

Brendan and Nicola Doyle (Opera Project)

A fund established for 2 years to support Opera and Stagecraft courses for Chetham’s students (2023/24 and 2024/25).

Friends of Chetham’s Fund

A fund to support the advancement of education of students at Chetham’s by funding projects and facilities as the School requires.

Chets in London Fund

A fund to support the School.

Stoller Hall Fund

A fund to support the costs of running the Stoller Hall.

50[th ] Anniversary Fund

A fund established to support the work of the School in a variety of ways.

Capital Fund – Instruments

A fund representing the depreciated capital value of instruments purchased using the Instrument Fund. This fund is now fully expended.

Confucius Classroom 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 to enable the Piano department to facilitate further Summer Schools, to support piano students and to purchase instruments.

41

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

18. Restricted funds (continued)

Grants and Other Income Fund

This fund shows grants and other restricted income received for specific charitable purposes such as outreach events and conferences, and specific support for individual students.

Library

J Paul Getty Fund

This is a fund for the conservation of Library material. This fund is now fully expended.

Miscellaneous Restricted Fund

This is a fund established for miscellaneous restricted donations.

Library Patrons Fund

This fund is for donations made by Library Patrons and the income is transferred each year to the unrestricted General Fund.

Karl Marx Recording Project Fund

This is a fund established with a grant from the Lipman Miliband Trust for digitising and making facsimiles of the books used by Marx when he visited the Library.- This fund is now fully expended.

Arts and Heritage Fund

This is a fund established for an art installation in the Library.

Booth Charities Fund

This is a fund established for a project on the history of Salford. This fund is now fully expended.

Hills Archive Fund

This is a fund established to meet the expenses of cataloguing the Hills Archive Collection. This fund is now fully expended.

HLF Project Fund

This is a fund established to support the HLF application for the visitor attraction project. This fund is now fully expended.

Heritage Compass Fund

A fund established to provide training support for two development departments.

Conservation Project Fund

A fund established to support the conservation work of the library.

Peter Folkman Fund

A fund established to support the Creative Engagement work at Chetham’s Library.

42

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

19. Unrestricted funds

Group
Hospital
General Fund
Designated funds:
Palatine Demolition
Fund
School
General Fund
Designated funds:
Chiller Unit Fund
Millgate Building
Refurbishment Fund
Dining Room
Refurbishment Fund
Chesters Bequest
Fund
Organ Cash
Settlement Fund
Whiteley Hall Fund
Music Department &
Tour Fund
Library
General Fund
David Blamires Fund		 Restated
Balance at 1
September
2024
£
Incoming
resources
£
Resources
expended
£
Transfers
between
funds
£
Investment
gains/
(losses)
£
Balance at
31 August
2025
£
3,038,814
(228,907)
672,145
(394,039)
-
-
-
-
-
3,316,920
(228,907)
2,809,907
672,145
(394,039)
-
-
3,088,013
4,515,940
13,181,198
(13,931,684)
744,173
48,855
4,558,482
30,000
-
-
-
-
30,000
-
-
-
-
-
-
91,725
-
-
-
-
91,725
257,173
-
-
(257,173)
-
-
487,000
-
-
(487,000)
-
-
330,790
-
-
-
-
330,790
(905)
-
-
-
-
(905)
5,711,723
13,181,198
(13,931,684)
-
48,855
5,010,092
226,474
137,473
(204,548)
-
588
159,987
110,000
-
-
-
-
110,000
336,474
137,473
(204,548)
-
588
269,987
8,858,104
13,990,816
(14,530,271)
-
49,443
8,368,092

43

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

19. Unrestricted funds

Charity
Hospital
General Fund
Designated funds:
Palatine Demolition
Fund
School
General Fund
Designated funds:
Chiller Unit Fund
Millgate Building
Refurbishment Fund
Dining Room
Refurbishment Fund
Chesters Bequest
Fund
Organ Cash
Settlement Fund
Whiteley Hall Fund
Music Department &
Tour Fund
Library
General Fund
David Blamires Fund		 Restated
Balance at 1
September
2024
£
Incoming
resources
£
Resources
expended
£
Transfers
between
funds
£
Investment
gains/
(losses)
£
Balance at
31 August
2025
£
3,045,894
(228,907)
672,145
(394,039)
-
-
-
-
-
3,324,000
(228,907)
2,816,987
672,145
(394,039)
-
-
3,095,093
4,502,107
12,372,962
(12,970,507)
744,173
48,855
4,697,590
30,000
-
-
-
-
30,000
-
-
-
-
-
-
91,725
-
-
-
-
91,725
257,173
-
-
(257,173)
-
-
487,000
-
-
(487,000)
-
-
330,790
-
-
-
-
330,790
(905)
-
-
-
-
(905)
5,697,890
12,372,962
(12,970,507)
-
48,855
5,149,200
226,474
137,473
(204,548)
-
588
159,987
110,000
-
-
-
-
110,000
336,474
137,473
(204,548)
-
588
269,987
8,851,351
13,182,580
(13,569,094)
-
49,443
8,514,280

44

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2025

19. Unrestricted funds (continued)

Hospital

Palatine Demolition Fund

A fund established for the costs of demolishing the Palatine Building. This fund is in deficit at 31 August 2025 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

Chiller Unit Fund

A fund established to provide resources for replacing the Chiller Unit in the New School Building at the end of its useful life.

Millgate Building Refurbishment Fund

A fund established for the refurbishment of the boys’ boarding accommodation and improvements to other areas in the Millgate Building.

Dining Room Refurbishment Fund

A fund established for the refurbishment of the School’s dining room.

Chesters Bequest Fund

A fund established from a bequest to support developments at the school.

Organ Cash Settlement Fund

A fund established to hold the insurance cash settlement for the fire damaged Whiteley Hall Organ.

Music Department Tour Fund

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”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £914,330 (2024: £971,982), and at the year-end £120,213 (2024 - £187,881) was accrued in respect of contributions to this scheme.

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.

45

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2025

20. Pension arrangements (continued)

Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:

The result of this valuation was implemented on 1 April 2024.The next valuation result is due to be implemented from 1 April 2027.

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

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The School is unable to identify its share of the underlying assets and liabilities of the plan.

Accordingly, the School has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The School has set out above, the information available on the scheme.

In addition, a small number of employees are members of the Greater Manchester Pension Fund (“GMPF”). The GMPF is a multi-employer final salary defined benefit scheme and the assets of the School are pooled with similar institutions for actuarial valuation purposes. Accordingly, under FRS 102 the Scheme is 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 valuation of the scheme was at 31 March 2025 when the market value of the assets of the Scheme was £32,200 million, being 128% of members’ accrued benefits.

The pension contributions made to the Scheme for the year ended 31 August 2025 were £10,106 (2024: £8,356). The employee contribution rate varied between 5.5% and 6.8% depending upon actual pay levels. The employer contribution rate was 25.4%.

In addition to the above, the contributions to money purchase schemes amounted to £243,811 (2024: £142,435).

46

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

21. Capital commitments

At the year end, the Foundation had capital commitments of £36,000 (2024: £720,970).

22. Operating lease commitments

The School has minimum lease payments under non-cancellable operating leases as follows:

Within one year
Between two and five years
After five years		 Equipment
2025
£
2024
£
22,883
26,175
82,034
83,491
44,801
66,227
149,718
175,893

23. Financial Instruments

Financial assets measured at amortised cost (a)
Financial assets measured at fair value (b)
Financial liabilities measured at amortised cost (c)
Net financial assets measured at amortised cost		 Group
2025
£000
4,126
11,100
(3,203)
12,023		 Restated
Group
2024
£000
4,563
10,911
(2,950)
12,524		 Charity
2025
£000
4,016
11,100
(2,940)
12,176		 Restated
Charity
2024
£000
5,014
10,911
(3,402)
12,523

Impairment losses charged to financial assets measured at amortised cost in the year amounted to £Nil (2024: £Nil).

24. Related party transactions

During the year, there were Feoffees expenses totalling £456 (2024: £Nil) relating to subsistence. No trustees were reimbursed for these expenses.

During the year, there were donations from Feoffees totalling £35,000 (2024: £Nil).

47

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

25. Comparative figures from previous financial year

Statement of financial activities

Transfer between funds
10
Gains/(losses) on investment assets:
Realised gains and losses
Unrealised gains and losses
Net movement in funds
Fund balances at 1 September 2023
Fund balances at 31 August 2024
Notes
Income from:
Charitable activities:
School fees
2
Ancillary activities
6
Other trading activities:
Activities for generating funds
Investments:
3
Investment income
4
Voluntary sources:
Bequests and donations
5
Grants received
Total incoming resources
Expenditure on:
Raising funds:
Fundraising
Publicity
Conference, facility hire and trading costs
Financing costs
Investment management costs
Charitable activities:
Teaching costs – academic
Teaching costs – music
Welfare
Premises
Scholarships and Bursaries
Grants, awards and prizes
Library running costs
Support and Governance costs
Total resources expended
9
Net income/(expenditure)		 Hospital
Funds
Restated
School
Funds
Library
Funds
Restated
2024
£
£
£
£
-
10,234,331
-
10,234,331
972
1,124,353
-
1,125,325
-
817,865
97,356
915,221
33,979
140,349
78,938
253,266
50,569
864,060
123,272
1,037,901
-
11,418
-
11,418
85,520
13,192,376
299,566
13,577,462
-
231,285
-
231,285
-
60,281
-
60,281
2,824
835,035
-
837,859
102,664
25,466
-
128,130
4,500
37,700
16,420
58,620
109,988
1,189,767
16,420
1,316,175
-
2,369,482
-
2,369,482
-
4,419,713
-
4,419,713
-
2,067,341
-
2,067,341
994,747
3,615,174
-
4,609,921
-
619,160
-
619,160
-
8,600
-
8,600
-
-
214,616
214,616
2,995
139,022
2,501
144,518
997,742
13,238,492
217,117
14,453,351
1,107,730
14,428,259
233,537
15,769,526
627,000
(627,000)
-
-
(84,678)
(413,353)
32,473
(465,558)
126,959
742,537
185,910
1,055,406
(1,022,210)
(1,235,883)
66,029
(2,192,064)
(352,929)
(1,533,699)
284,412
(1,602,216)
31,185,260
12,856,061
2,846,051
46,887,372
30,832,331
11,322,362
3,130,463
45,285,156

48

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

For the year ended 31 August 2025

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS

25. Comparative figures from previous financial year (continued)

Analysis of total resources expended

Cost of generating funds
Fundraising
Publicity
Conference, facility hire and
trading costs
Financing costs
Investment management costs
Charitable activities
Teaching costs – academic
Teaching costs - music
Welfare
Premises
Scholarships & Bursaries
Grants, awards & prizes
Library costs
Governance costs		 Staff
costs
£
Other
costs
£
184,930
46,355
-
60,281
455,992
381,867
128,130
-
58,620		 Depreciation
£
Total
2024
£
Total
2023
£
-
231,285
148,721
-
60,281
118,083
-
-
837,859
128,130
505,330
113,120
-
58,620
48,333
640,922
675,253		 -
1,316,175
933,587
2,041,462
328,020
4,009,512
410,201
917,042
1,150,299
961,019
2,394,864
-
619,160
-
8,600
176,132
38,484		 -
2,369,482
2,141,324
-
4,419,713
4,241,419
-
2,067,341
1,784,120
1,254,038
4,609,921
3,513,791
-
619,160
634,364
-
8,600
22,542
-
214,616
226,835
8,105,167
4,949,628		 1,254,038
14,308,833
12,564,395
13,932
130,586		 -
144,518
118,202
1,254,038
15,769,526
13,616,184
8,760,021
5,755,467

Conference and facility hire includes £2,824 (2023: £4,357) in relation to Chetham’s Hall Limited and £772,172 (2023: £483,852) in relation to Chetham’s Trading Limited.

Total resources expended is £1,177,477 (2023: £1,156,128) in respect of support costs detailed below, that have been allocated to the above expense headings.

Support Costs
Management
Administration
Recruitment
Office costs
IT
Legal and professional
Insurance		 Hospital
£
School
£
Library
£
Total
2024
£
Total
2023
£
-
100,072
176,132
276,204
294,896
-
355,365
-
355,365
300,599
-
38,239
-
38,239
40,264
-
3,481
-
3,481
88,142
-
148,763
-
148,763
153,770
3,737
181,278
1,909
186,924
66,366
80,584
87,485
432
168,501
212,091
84,321
914,683
178,473
1,177,477
1,156,128

49

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

25. Comparative figures from previous financial year (continued)

Allocation of the charity’s net assets

The net assets are held for the various funds as follows:

Group 2024
Hospital
Unrestricted
Restricted
Endowment
School
Unrestricted
Restricted
Library
Unrestricted
Restricted
Endowment
Total
Unrestricted
Restricted
Endowment		 Fixed
Assets
Investments
Restated
Net current
assets/
(liabilities)
Restated
Long term
liabilities
Restated
Total
£
£
£
£
£
1,761,300
3,447
1,045,160
-
2,809,907
28,806,947
394,953
(2,011,419)
-
27,190,481
-
807,146
24,797
-
831,943
30,568,247
1,205,546
(941,462)
-
30,832,331
2,071,794
1,389,366
2,250,563
-
5,711,723
-
5,487,446
123,193
-
5,610,639
2,071,794
6,876,812
2,373,756
-
11,322,362
115,000
29,165
192,309
-
336,474
-
-
9,878
-
9,878
-
2,799,244
(15,133)
-
2,784,111
115,000
2,828,409
187,054
-
3,130,463
3,948,094
1,421,978
3,488,032
-
8,858,104
28,806,947
5,882,399
(1,878,348)
-
32,810,998
-
3,606,390
9,664
-
3,616,054
32,755,041
10,910,767
1,619,348
-
45,285,156

50

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2025

25. Comparative figures from previous financial year (continued)

Charity 2024
Hospital
Unrestricted
Restricted
Endowment
School
Unrestricted
Restricted
Library
Unrestricted
Restricted
Endowment
Total
Unrestricted
Restricted
Endowment		 Fixed
Assets
Investments
Restated
Net current
assets/
(liabilities)
Restated
Long term
liabilities
Restated
Total
£
£
£
£
£
1,761,300
3,547
1,052,140
-
2,816,987
28,806,947
394,953
(2,011,419)
-
27,190,481
-
807,146
24,797
-
831,943
30,568,247
1,205,646
(934,482)
-
30,839,411
2,071,794
1,389,466
2,236,630
-
5,697,890
-
5,487,446
123,193
-
5,610,639
2,071,794
6,876,912
2,359,823
-
11,308,529
115,000
29,165
192,309
-
336,474
-
-
9,878
-
9,878
-
2,799,244
(15,133)
-
2,784,111
115,000
2,828,409
187,054
-
3,130,463
3,948,094
1,422,178
3,481,079
-
8,851,351
28,806,947
5,882,399
(1,878,348)
-
32,810,998
-
3,606,390
9,664
-
3,616,054
32,755,041
10,910,967
1,612,395
-
45,278,403

Endowment funds

Group and Charity
Hospital
Investment
Replacement
Sinking Funds
EF Jacob
Endowment Fund
Library
Grants from
Heritage Lottery
Fund
Total		 Balance at 1
September
Incoming
Resources
Investment
Transfers
between
Balance at 31
August
2023
Resources
expended
gains/(losses)
funds
2024
£
£
£
£
£
£
583,668
46,140
-
56,552
-
686,360
145,583
-
-
-
-
145,583
729,251
46,140
-
56,552
-
831,943
2,503,210
78,938
(16,420)
218,383
--
2,784,111
3,232,461
125,078
(16,420)
274,935
--
3,616,054

51

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

25. Comparative figures from previous financial year (continued)

Restricted funds

Group and Charity
Hospital
Capital Fund - Millgate Extension
Capital Fund - New Land
Capital Fund - New School Building
Capital Fund – Nicholls Conversion
Capital Fund – Concert Hall
Improvements Fund
New School Development Fund
Concert Hall Fund
Instrument Fund
Nicholls Fund
Miscellaneous Fund
School
Vernon Farley Fund
Hazel Smith Fund
Ida Carroll Fund
Hospital Prize Fund
Kolbert Music Prize Fund
Academic Prizes Fund
Music Prizes Fund
David Hartigan Memorial Piano
Fund
Neil Vint Bursary Fund
Milne Fund
Bursary Fund
Bateson Family Bursary Fund
Leverhulme Trust Bursary Fund
Oglesby Bursary Fund
2022 matches Funding Bursary
Fund
Tony and Tania Music Prize Fund
Hospitallers Camp Fund
Mellor Endowment Fund
Amy Watson Endowment Fund
John Shaw Bursary Fund
Stoller Bursary Fund
Ethel Kerry Bursary Fund
Hardship Fund
Co-op Fund
Miscellaneous Restricted Fund
David Gaskill Music Week Fund
Opera Vocal Course
David Gaskill - Balance Sheet
Friends of Chetham's Fund
Chets in London Fund
Stoller Hall Fund
50thAnniversary Fund
Confucius Classroom Fund
Piano Summer School Fund
Capital Fund - Instruments
Grants and Other Income Fund		 Balance at 1
Incoming
Resources
Transfers
between
Investment
Balance at 31
September 2023
resources
expended
funds
gains/(losses)
August 2024
£
£
£
£
£
£
856,184
-
(39,668)
-
-
816,516
4,500,000
-
-
-
-
4,500,000
16,994,807
-
(585,832)
-
-
16,408,975
560,915
-
(18,506)
-
-
542,409
6,654,713
-
(197,665)
-
-
6,457,048
22,569
-
-
-
-
22,569
(1,609,084)
13,319
-
-
-
(1,595,765)
(196,986)
-
-
-
-
(196,986)
194,008
23,083
-
-
(14,271)
202,820
32,601
-
-
-
-
32,601
294
-
-
-
-
294
28,010,021
36,402
(841,671)
-
(14,271)
27,190,481
12,587
-
(300)
-
-
12,287
-
-
-
-
-
-
(769)
-
(2,000)
-
-
(2,769)
81,525
-
-
-
-
81,525
1,968
-
-
-
-
1,968
325
-
-
-
-
325
300
2,588
1,101
-
(1,300)
(1,250)
-
-
-
-
101
1,338
29,170
400
-
-
-
29,570
247,824
-
(721)
-
-
247,103
1,622,752
423,387
(317,671)
-
378,749
2,107,217
735,375
-
(140,066)
-
-
595,309
755
80,000
(61,709)
-
-
19,046
9,863
13,796
27,741
5,000
(34,349)
-
-
-
-
-
3,255
18,796
5,000
-
-
-
-
5,000
9,613
-
-
-
-
9,613
5,345
-
-
-
-
5,345
24,551
-
-
-
-
-
-
-
-
-
24,551
-
14,304
-
-
-
-
14,304
1,684,019
-
(63,797)
-
-
1,620,222
56,222
-
(277)
-
-
55,945
415
-
-
-
-
415
104,077
-
7,500
4,735
-
-
(12,900)
-
-
-
-
-
-
-
-
95,912
-
7,500
33,334
-
(1,250)
-
-
32,084
18,684
838
-
-
-
19,522
2,521
-
(182)
-
-
2,339
33,546
6,581
-
-
-
40,127
45,733
25
(11,000)
-
-
34,758
103,585
11,878
(571)
-
-
114,892
184,251
51,621
-
-
-
235,872
7,083
-
-
-
-
7,083
275,126
226,439
(9,553)
(321,928)
-
170,084
5,372,968
839,746
(658,896)
(321,928)
378,749
5,610,639

52

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

25. Comparative figures from previous financial year (continued)

Restricted funds (continued)

Library
J Paul Getty Fund
Miscellaneous Restricted Fund
Library Patrons Fund
Arts and Heritage Fund
Heritage Compass Fund
Conservation Project Fund
Total		 Balance at 1
Transfers
Balance at
September
Incoming
Resources
Between
Investments
31 August
2023
resources
expended
funds
gains/(losses)
2024
£
£
£
£
£
£
-
-
-
-
-
-
1,710
-
-
-
-
1,710
-
138
-
-
-
138
2,470
-
-
-
-
2,470
710
-
-
-
-
710
4,850
-
-
-
-
4,850
9,740
138
-
-
-
9,878
33,392,729
876,286
(1,500,567)
(321,928)
364,478
32,810,998

Unrestricted funds

Group
Hospital
General Fund
Designated funds:
Palatine Demolition
Fund
School
General Fund
Designated funds:
Chiller Unit Fund
Millgate Building
Refurbishment Fund
Dining Room
Refurbishment Fund
Chesters Bequest
Fund
Organ Cash
Settlement Fund
Whiteley Hall Fund
Music Department &
Tour Fund
Library
General Fund
David Blamires Fund		 Balance at 1
September
2023
£
Restated
Incoming
resources
£
Resources
expended
£
Transfers
between
funds
£
Investment
gains/
(losses)
£
Restated
Balance at 31
August 2024
£
2,674,895
(228,907)
630,015
-
(266,096)
-
-
-
-
-
3,038,814
(228,907)
2,445,988
630,015
(266,096)
-
-
2,809,907
6,620,706
11,800,128
(14,177,257)
321,928
(49,565)
4,515,940
30,000
-
-
-
-
30,000
-
-
-
-
-
-
91,725
-
-
-
-
91,725
254,567
2,606
-
-
-
257,173
487,000
-
-
-
-
487,000
-
700,000
(369,210)
-
-
330,790
(905)
-
-
-
-
(905)
7,483,093
12,502,734
(14,546,467)
321,928
(49,565)
5,711,723
333,101
110,490
(217,117)
-
-
226,474
-
110,000
-
-
-
110,000
333,101
220,490
(217,117)
-
-
336,474
10,262,182
13,353,239
(15,029,680)
321,928
(49,565)
8,858,104

53

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

25. Comparative figures from previous financial year (continued)

Unrestricted funds

Charity
Hospital
General Fund
Designated funds:
Palatine Demolition
Fund
School
General Fund
Designated funds:
Chiller Unit Fund
Millgate Building
Refurbishment Fund
Dining Room
Refurbishment Fund
Chesters Bequest
Fund
Organ Cash
Settlement Fund
Whiteley Hall Fund
Music Department &
Tour Fund
Library
General Fund
David Blamires Fund		 Balance at 1
September
2023
£
Restated
Incoming
resources
£
Resources
expended
£
Transfers
between
funds
£
Investment
gains/
(losses)
£
Restated
Balance at 31
August 2024
£
2,679,151
(228,907)
630,015
-
(263,272)
-
-
-
-
-
3,045,894
(228,907)
2,450,244
630,015
(263,272)
-
-
2,816,987
6,770,708
10,832,161
(13,373,125)
321,928
(49,565)
4,502,107
30,000
-
-
-
-
30,000
-
-
-
-
-
-
91,725
-
-
-
-
91,725
254,567
2,606
-
-
-
257,173
487,000
-
-
-
-
487,000
-
700,000
(369,210)
-
-
330,790
(905)
-
-
-
-
(905)
7,633,095
11,534,767
(13,742,335)
321,928
(49,565)
5,697,890
333,101
110,490
(217,117)
-
-
226,474
-
110,000
-
-
-
110,000
333,101
220,490
(217,117)
-
-
336,474
10,416,440
12,385,272
(14,222,724)
321,928
(49,565)
8,851,351

54

Docusign Envelope ID: 80E2D0ED-9D56-89A5-82DA-DCF03114C040

The Hospital and Library in Manchester founded by Humphrey Chetham Esq and incorporated by King Charles II NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2025

26. Prior year restatement

During the year the Foundation reviewed the brought forward debtors, resulting in prior year adjustments to recognise historic debts that were recorded incorrectly and that should have been expensed through the Consolidated Statement of Financial Activities (SOFA). There was also a prior year adjustment to reclassify £1,328,101 in relation to the bank loan facility from long term liabilities to current liabilities, details of which are in Note 15. These adjustments have no impact on net cash flow.

31 August 2024 31 August
As previously 2024
stated Adjustments As restated
£ £ £
Group
Income 13,943,451 (365,989) 13,577,462
Expenditure 15,769,526 - 15,769,526
Debtors 650,233 (365,989) 284,244
Creditors: amounts falling due (1,622,160) (1,328,101) (2,950,261)
within one year
Creditors: amounts falling due after (1,328,101) 1,328,101 -
more than one year
Opening unrestricted reserves 10,262,182 - 10,262,182
Closing unrestricted reserves 9,224,093 (365,989) 8,858,104
Opening total reserves 46,887,372 - 46,887,372
Closing total reserves 45,651,145 (365,989) 45,285,156
31 August 2024 31 August
As previously 2024
stated Adjustments As restated
£ £ £
Charity
Income 13,752,625 (365,989) 13,386,636
Expenditure 14,962,570 - 14,962,570
Debtors 589,317 (365,989) 223,328
Creditors: amounts falling due (2,073,748) (1,328,101) (3,401,849)
within one year
Creditors: amounts falling due after (1,328,101) 1,328,101 -
more than one year
Opening unrestricted reserves 10,416,440 - 10,416,440
Closing unrestricted reserves 9,217,340 (365,989) 8,851,351
Opening total reserves 47,041,630 - 47,041,630
Closing total reserves 45,644,392 (365,989) 45,278,403

55