ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 July 2020 CHELTENHAM LADIES’ COLLEGE Annual Report and Financial Statements Year ended 31 July 2020 CONTENTS Message from the Chair of Council .................................................................................................................... 3 Report of the Council for the year ended 31 July 2020 ...................................................................................... 4 Objectives ......................................................................................................................................................... 10 Medium term aims ............................................................................................................................................ 11 Report on objectives to date ............................................................................................................................. 13 Overview of 2019/20 ......................................................................................................................................... 16 Financial Review ............................................................................................................................................... 19 Statement of Council’s Responsibilities ............................................................................................................ 22 Independent Auditor’s Report to The Council Members of the Cheltenham Ladies’ College .......................... 23 Consolidated Statement of Financial Activities for the year ended 31 July 2020............................................. 26 Balance Sheets as at 31 July 2020 .................................................................................................................. 27 Consolidated Cash Flow Statement for the year ended 31 July 2020 ............................................................. 28 Notes to the Financial Statements .................................................................................................................... 29 2 CHELTENHAM LADIES’ COLLEGE Annual Report and Financial Statements Year ended 31 July 2020 MESSAGE FROM THE CHAIR OF COUNCIL I write as we enter a second period of lockdown in England, although this time schools are allowed to remain open. It has certainly been a period of considerable challenge for all of us and I would like to commend the Principal and her team for their leadership through this difficult time. After ensuring that all the girls reached home safely, before the end of term in March, College set about creating a remote learning portal so that teaching, pastoral care, health and fitness activities, exam preparation, and even musical tuition and networking events could continue. The old adage, ‘necessity is the mother of invention’ was never more aptly applied to the comprehensive curriculum that was available for pupils online. And I certainly had not imagined that I would be carrying out my final responsibilities as Chair of Council ‘remotely’, including my last Speech Day speech, filmed from the stage of an eerily empty Princess Hall for College’s first ever ‘Virtual Speech Day’. College contributed to both local and national efforts during lockdown in support of our communities and the NHS. Surplus food and supplies were distributed to food banks and care homes, and PPE equipment was manufactured in the EET department for care homes, doctors’ surgeries and our local NHS Trust. Additionally, many pupils carried on with community service in a variety of ways, from teaching local children singing, volunteering in food banks and community centres to making scrubs and masks. Many plans, events and activities were postponed or cancelled and this included public exams. The national crisis that engulfed the grading criteria for these is well known, but I would like to pay tribute to the students who were affected by this and to the academic staff who supported them throughout this period. The 2020 leaving cohort showed particular maturity and resilience during this turbulent time, which bodes well for their ability to meet the inevitable challenges they will face throughout their lives and I congratulate them on their success. The impact of Covid-19 on the boarding sector in the UK as a whole has caused us to consider carefully the implications for College in the years to come. Planned major capital expenditure has been paused and priorities adjusted to protect the finances of College and to ensure we are well placed to withstand the wider economic impact of the pandemic. The last few months have presented College with both challenges and opportunities and these will clearly continue for many weeks to come. Council, the Principal and her leadership team have been in regular contact throughout, ensuring that we continue to focus on the immediate operational challenges whilst ensuring that College emerges from the current pandemic in a strong and resilient position. As I reflect on my nine years on Council, six of them as chair, I am proud of the progress that has been made in so many areas of College life. This is a team activity and so I would like to extend my personal thanks to all members of Council for their hard work and support. It has been a pleasure to work closely with the Principal and with so many in College and, despite the immediate challenges of the last six months and those which are still on the horizon, to leave College in such good heart. I wish College, and the Principal and my successor Nick Baird in particular, every success in the future – I know College is in good hands. Libby Bassett Chair of Council 3 CHELTENHAM LADIES’ COLLEGE Annual Report and Financial Statements Year ended 31 July 2020 REPORT OF THE COUNCIL FOR THE YEAR ENDED 31 JULY 2020 REFERENCE AND ADMINISTRATIVE INFORMATION Cheltenham Ladies’ College (“College”) operates under the terms of a Royal Charter granted in 1935, and Supplemental Charters granted in 1955 and in 1991 and further amendments passed and granted by an Order from the Privy Council in 2015. College is registered with the Charity Commission under charity registration number 311722. Principal Address: Bayshill Road Cheltenham Gloucestershire GL50 3EP www.cheltladiescollege.org STRUCTURE, GOVERNANCE AND LEADERSHIP The Royal Charter limits the size of Council to a maximum of 15 Elected Members and three Nominated Members. Council meets at least once a term, with an additional annual meeting to review strategy. Council Members are appointed by the Members of College at the AGM. They serve for a three-year period and may be re-elected for two further three-year periods. Upon their appointment, Council Members are given an induction to their role and responsibilities as trustees of College. They meet with senior employees of College and receive access to a detailed handbook online explaining the workings of Council and College. Council has a number of committees, which operate under their own terms of reference and delegated powers, to consider specific areas of College’s operations. These are Finance and Executive, Audit and Risk, Land and Buildings, Education and Nominations Committees. Council also has an Investment Sub-Committee and a Principal’s Remuneration Committee, both being Sub-Committees of the Finance and Executive Committee. As part of a continuous process, the Nominations Committee reviews the skills of Council Members and any gaps are addressed by Nominations appointing new members to join Council, co-opting members with specific skills to Council committees and through relevant training to ensure appropriate expertise is present. The pay and remuneration of key management personnel is discussed and set by the Finance and Executive Committee on an annual basis using benchmark data. CHARITY GOVERNANCE CODE The Charity Governance Code, published in 2017, sets out the principles and recommended good practice within the sector. During the year, Council reviewed its current governance arrangements using the Charity Governance Code diagnostic tool for large charities. While College fully supports the principles and already follows many aspects of best practice, a few improvements have been identified and these will be implemented in due course. The immediate focus is on two sections of the code: Diversity and Board Effectiveness. Like many charities, College recognises the need to continue to consider issues of diversity more explicitly in its future recruitment processes for Council members. Council has undertaken regular self-evaluation reviews in the past but will introduce a more structured approach going forward and will commission an external review of Council activities and effectiveness as soon as current circumstances allow. 4 CHELTENHAM LADIES’ COLLEGE Annual Report and Financial Statements Year ended 31 July 2020 MEMBERS OF COUNCIL AND CHARITY TRUSTEES Members of Council as at 31 July 2020 (showing changes during the financial year and up to the date of signing): Elected Members Ms E Bassett MA ACA (Chair) Mrs M Webster BSc (Hons) (Vice Chair) Mr N Baird MA CMG CVO (appointed 28.02.20) Mr J Briant BSc (Hons) ACA Mr S Davies BSc (Hons) ACA (appointed 28.02.20) Mr R Denny LLB Mr G Evans MA Mr R Leechman BA Mr D Pittaway QC MA FCIArb Ms S Putt MA Mr K Senior LLB FCA Mrs L Terry MA Mrs S Thompson MA MA MBA Dr V Udale MA Mrs D Williams MA FCA Nominated Members Incorporated Guild of Cheltenham Ladies’ College: Mrs K Robyns LLB Academic Staff of College: Mrs M Henderson