The Governors of the School, who are also Directors of the Company and Charity Trustees, present their annual report, together with the audited financial statements for the year ended 31 August 2023.
The format and content of this report and financial statements comply with the requirements of the Companies Act 2006, the Company's Memorandum and Articles of Association, the Charities Act 2011 and the Statement of Recommended Practice; "Accounting and Reporting by Charities (FRS102)".
Cranford School, was incorporated on 1 August 1980 as a charitable company in England and Wales, limited by guarantee with company registration number 01510524, and charity registration number 280883.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the trust's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: 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)” (as amended for accounting periods commencing from 1 January 2019).
The principal charitable objects, as set out in the Memorandum of Association, are to promote and to provide for the advancement of education of children in the UK and elsewhere, such education to be designed to give a sound Christian and moral basis to all pupils. The principal activity of the Company is the operation of an independent nursery school, junior school, senior school and sixth form.
Cranford School continues to enjoy a growing national reputation for excellence as one of the UK's leading small independent day schools. Situated on the Oxfordshire-Berkshire border, the school offers a vibrant education to boys and girls aged 3-18. Rated 'Excellent' in all categories by the Independent Schools Inspectorate in its most recent inspection (November 22), Cranford School specialises in academic achievement, outstanding pastoral care and extra-curricular opportunities for all. Firmly based on traditional values, within a warmly nurturing environment, the school’s key aim is to ensure academic success for all pupils, whilst also fully embracing their diversity of ability and talent.
Key areas of focus this year are:
To further enhance the academic performance of all pupils
To continue to provide excellent pastoral support
To further support outreach initiatives to local schools and the wider community
To firmly embed the new Sixth Form and the natural transition from Senior School
A continued commitment to ensure that the school is governed and lead so as to ensure that it continues to be a place of educational excellence for many future generations.
Continue to support families and the broadening access to the school through bursaries.
The Governors have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
The description under the headings ‘Achievements and Performance’ and ‘Financial Review’ meet the company law requirements for the Governors to present a strategic report.
The school continues to go from strength to strength under the continued leadership of Headmaster, Dr James Raymond at Cranford School, with over 580 pupils currently on roll. 2023 also marked another year of sustained academic success with a value add of +1.3 achieved at GCSE, meaning pupils achieved over a grade above what their baseline data indicated they should achieve at a similar centre. Headline results of 62% 9-7 at GCSE and 56% A*-B at A-level reflect outstanding academic results, firmly consolidating Cranford School’s reputation for excellence. Registrations at our key entry points of Reception, Year 7 and Sixth Form are strong, with a healthy trend of oversubscribed places into Senior School. The move to a co-educational through-school model has been validated by the school community with current Years 7-9 cohorts having an equal gender balance. A wide programme of community outreach events and open events have already attracted excellent interest and with the current trajectory this will only improve throughout the academic year. The Junior School Day of Discovery themed “World of Sport” attracted over 1200 members of the local community including families and primary school children to attend the free open community event held at the school. The event was also an opportunity to help raise vital funds for Mary’s Meals, as part of a wider school charity focus this year.
Our popular Stretch and Challenge series of Saturday morning masterclasses continues and is well attended during both the Autumn and Spring Term. Children from local primary schools in Years 5 and 6 enjoy free specialist teacher lead classes across multiple subjects across the 10 week programme. The school’s swimming pool and facilities along with our dedicated swimming coach are helping local primary schools with their swimming provision during the Summer Term. South Moreton Primary pupils in both Years 5 and 6 enjoyed swimming lessons at Cranford in 2023. Cranford continues to support grass roots sport with local sporting clubs Wallingford Netball and Hockey and Goring Cricket all consistently using Cranford’s sporting facilities outside of school hours.
Throughout 2023 the school has supported numerous charities together with the support of the school’s families and the wider community. The annual Junior School Mini-Marathon is a festive occasion for the entire Junior School with this year’s chosen charity being PSPA.
Sport remains a key part life at Cranford. Many pupils enjoy individual sporting success outside school, with several playing at county, regional or national level in a host of sports which include, but are not limited to, netball, equestrian, cricket, swimming, hockey, dance and athletics. In school, all pupils from Years 3 to 11 are able to, and encouraged to, take part in competitive match play in line with the school’s ethos of Sport For All. Team practices are open to everyone and multiple teams within each year group means sporting opportunities are made as widely available as possible. The current under 11 girls hockey team have recently been crowned national champions after an undefeated run through the ISA Tournament. Whilst extensive sporting opportunities are available within the school curriculum, there are also a host of extra-curricular physical activities and clubs on offer, allowing Cranford pupils to experience an incredible variety of sports or physical activities.
The opportunity for children to learn to perform in front of an audience with ease continues to be a focus in school, thanks to the efforts of our excellent Performing Arts department. The school’s dedication to both the performing and creative arts was recognised by Arts Council England in 2022 with an Arts Mark Gold Award. With non-auditioned choirs embedded right across the school and a programme of annual plays, musicals and dance productions in place, all pupils are very much encouraged to build their confidence in performing.
An incredibly rich extra-curricular programme presents pupils of all ages with the chance to explore a wealth of interests and new talents. Their experiences are further enhanced by an exciting programme of trips and expeditions which this year included international destinations such as the Netherlands Sports Tour, year group trips to Paris and Barcelona and much more besides. Junior School residential visits to outward-bound activity centres were provides to all year groups in Key Stage 2.
The operating surplus for this academic year amounted to £532,745 (2022: £515,540) as set out in the financial statements.
It is the policy of the School to maintain and establish sufficient funds and facilities to finance capital expenditure in order to equip the School with the necessary facilities needed to continue with the standard and quality of the educational services currently provided. In recent years the school has partly financed major capital developments via debt financing. The Governors use the annual budgeting cycle and review of monthly management accounts to ensure the school can service and repay these debts comfortably and meet banking covenants. Any future developments will continue to be funded by cash reserves or via further debt financing once the Governors are satisfied that borrowing is within an affordable level. It is also the policy of the Governors to build up sufficient reserves to cover the immediate needs for essential operating expenditure for a minimum of a term or to have ready access to additional funds to finance this requirement.
The Governors have adopted a policy of achieving sufficient reserves to ensure the School can meet its ongoing obligations:
- all aspects of the School's work can be conducted in an orderly and efficient manner, including the development and maintenance of the School's buildings;
- to use, where possible, cash assets and minimise borrowing;
- the Governors take a conservative view of the School's loans and have strong preference to fix the interest rate of them over the full term of the loans, thereby minimising exposure to the vagaries of the financial markets;
- to provide cover for unexpected or unavoidable items of expenditure, which cannot be funded from current income.
The Governors take prudent steps to safeguard the assets of the School.
The Governors have assessed the major risks to which the School is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Looking ahead to the next 5 years, the school is currently continuing the upward trajectory of growth in pupil numbers but potential future challenges may present themselves for the school and the wider independent education sector which the school needs to be aware of. The school has developed a detailed Capital Expenditure programme that will support the further enhancement of our educational offer, including that addition of new classrooms, a STEM centre, Swimming pool, Senior School Common Room and Green Room space for our theatre. Our focus remains on sustaining educational excellence for pupils at the school against the backdrop of strong demand for places.
The trust is a company limited by guarantee.
The Governors, who are also the directors for the purpose of company law, and who served during the year and subsequently were:
Governors are elected by the Board to fill a vacancy due to retirement, or to enhance the particular skills of the Board. Potential Governors are identified from a wide range of scholastic, business and professional fields, and are considered against the Trust's specifications concerning eligibility, competence and specialist skills. They are elected at a meeting of the Board after a thorough selection and recruitment process.
The members of the Governing Body are detailed above. The members of the Governing Body are legally responsible for the overall management and control of the School and its objectives. The Governing Body has a Chairperson and several sub-committees that support the Board of Governors, namely the Finance & General Purposes, Scholarships and Bursaries, and Educational sub-committees. In addition, the School has individual Governors responsible for the following areas: Child Protection, Health and Safety, Special Educational Needs and Early Years Foundation Stage.
The day to day running of the School is delegated to the Headmaster and the Senior Leadership Team.
The full board meets at least three times a year. The Finance & General Purposes Committee and the Education Committee also meet at least 3 times a year. The Scholarships and Bursaries Committee meet annually or more frequently when required.
The Company has no share capital and consequently, none of the Governors has any interest in the Company. The liability of the Governors is limited to the extent of £1 each in the event of the Company winding up.
The Governors' investment powers are governed by the Memorandum of Association which permits the charity's funds to be invested as required subject to the law in order to further the objects of the charity.
The national economic picture is challenging for the independent sector with high inflation and rising energy costs offering a short to medium term threat. It is hard to quantify the precise impact this will have on our parent body at this stage.
The current political climate and potential threats: The Labour Party manifesto position indicates a significant threat to charitable status/ VAT on fees. The potential combination of VAT on fees, loss of business rates relief and the current impact of energy bills and rising costs has the potential to create significant challenges.
The Governors acknowledge and embrace their duty to offer public access to the education Cranford House provides through a means-tested bursary scheme offered to children from the local communities. Every year financial assistance is awarded to a number of pupils via this scheme and in 2022/23 51 pupils benefited (2021/22: 66) at a combined cost to the school of £443,228 (2021/22: £475,459).
In addition, the school’s pupils contribute to the local community providing entertainment and performances through the year and by inviting local schools to participate in events at the School – sporting, musical, dramatic and educational. The School also provides the use of its facilities and equipment (eg. the swimming pool, sports hall, minibuses and staging) to local schools, community groups or organisations at no cost or at a subsidised cost. It supports local and national charities through a wide variety of fundraising activities. The pupils are active participants in the Duke of Edinburgh Award Scheme which encourages community involvement. The School is also committed to serving the best interests of the local community by protecting and actively promoting the improvement of the local environment. The school has lent its minibuses to support local church events and offers its parking facilities free of charge to the community for functions held during weekends or over the school holidays.
The Governors have paid due regard to guidance issued by the Charity Commission with regards to Public Benefit.
In accordance with the company's articles, a resolution proposing that Kench & Co Ltd be reappointed as auditor of the company will be put at a General Meeting.
The Governors' report, including the strategic report, was approved by the Board of Governors.
The Governors, who are also the directors of Cranford School for the purpose of company law, are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Governors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in operation.
The Governors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Cranford School (the ‘trust’) for the year ended 31 August 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of 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 trust 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.
In auditing the financial statements, we have concluded that the Governors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Governors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Governors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Governors' report for the financial year for which the financial statements are prepared, which includes the directors' report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and
the strategic report and the directors' report included within the Governors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the trust and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the Governors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of Governors' responsibilities, the Governors, who are also the directors of the trust for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Governors are responsible for assessing the trust’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 Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to the financial reporting framework, the Companies Act 2006 and employment law. Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above and corroborated our enquiries with management by reference to submissions and correspondence with H. M. Revenue and Customs where appropriate.
Given the size of the entity and the nature of its operations, we assessed the risks of material misstatements in respect of fraud and made appropriate enquiries of management and relevant related parties independently of management. We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries and other adjustments for appropriateness into our audit approach.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Cranford School was incorporated on 1 August 1980 in England and Wales as a private charitable company limited by guarantee with company registration number 01510524, charity registration number 280883. The registered office and business address is Moulsford, Wallingford, Oxfordshire, OX10 9HT.
The principal activity of the Company is the operation of an independent nursery school, junior school, senior school and sixth form
The accounts have been prepared in accordance with the trust's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: 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)” (as amended for accounting periods commencing from 1 January 2016). The trust is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Governors have a reasonable expectation that the trust has adequate resources and appropriate contingency plans in place to continue in operational existence for the foreseeable future. Thus the Governors continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Governors in furtherance of their charitable objectives unless the funds have been designated for other purposes.
The trust has restricted funds relating to donations received from The Gatehampton Hardship Fund. These funds are to be used for school fees for parents in unique circumstances with the approval of the Governors.
Income is recognised when the trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Income received and billed in advance for school fees and school trips is held as deferred income and is recognised in the appropriate accounting period.
Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount.
Resources expended comprise expenditure, including staff costs, directly attributable to the activity. Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with the use of resources.
Governance costs comprise the costs associated with the governance arrangements of the charity which include the cost of external audit and any legal advice associated with constitutional and statutory requirements. Also included is a proportion of staff costs that represent time spent on considering and implementing any strategic plans of the charity.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Tangible fixed assets are stated at cost less depreciation. Freehold land and buildings were stated at deemed cost on transition to FRS102 and at cost in respect of subsequent expenditure. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Freehold land and assets in the course of construction are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Stocks are stated at the lower of cost and net realisable value.
Net realisable value is the estimated selling price less costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors, cash and cash equivalents, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest rate method. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Pensions
The pension costs charged in the accounts represent the contributions payable by the trust during the year. Contributions are paid to the Teachers' Pension Agency and to the Pension Trust concerning non teaching staff.
In the application of the trust’s accounting policies, the Governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates regarding depreciation, potential bad debts and their underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Gross fees
Scholarship, bursaries and direct expenditure
Premises costs
General management expenses
Information technology
The charge in the accounts for public liability insurance, including Governors' liability, for the year is £10,351(2022: £9,681).
The average monthly number of employees during the year was:
Of the employees whose emoluments exceed £60,000, one (2022: one) has retirement benefits accruing under defined contribution pension schemes.
Of the employees whose emoluments exceed £60,000, two (2022: three) have retirement benefits accruing under defined benefits pension schemes.
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Freehold land and buildings with a carrying amount of £14,371,640 (2022: £14,360,208) have been pledged to secure borrowings of the trust. The trust is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
Lloyds Bank PLC holds first and second legal charges dated 10th February 1995, 6th February 1998, 30th April 2013 and 2nd October 2019 over freehold property. The total bank loans secured against freehold property as at 31st August 2023 were £5,214,512 (2022: £5,846,490). There were six long term loans in existence at 31st August 2023 repayable on a monthly basis and the following annual interest rates applied: (i) fixed at 5.43%, (ii) fixed at 4.05%; (iii) fixed at 4.37%; (iv) fixed at 4.16% (v) fixed at 4.512% and (vi) variable.
The school participated in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff during the year. The pension charge for the year includes contributions payable to the TPS of £665,322 (2022: £598,158) and at the year end £78,701 (2022: £nil) was due in respect of contributions to this scheme. The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. From 1 September 2019, the employer contribution rate was 23.68%. The School left the TPS on 31st August 2023 and has joined Aviva Pension Trust for Independent Schools (“the APTIS”) effective from 1st September 2023. The APTIS is a defined contribution pension scheme.
The TPS was an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contributed on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by the Parliament.
At the reporting end date the trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
As the Charitable Company is limited by guarantee, the board of Governors are deemed to have control for the purposes of Company Law.
There were no disclosable related party transactions during the year (2022 - none).
The Company's name was changed from Cranford House School Trust Limited to Cranford School on 24 October 2023.
The Company left the Teachers' Pension Scheme (defined benefit scheme) and joined Aviva Pension Trust for Independent Schools (defined contribution scheme) effective from 1 September 2023 as shown on note 18.