Chaffty registration numbpr 103LMXIZ HAWKSHEAD GRAMMAR SCHOOL FOUNDATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023 HAWKSHEAD GRAMMAR SCHOOL FOUNDATION LEGAL AND ADMINisfRATIVE INFORMATION Trustees J Myer5 Revj Dixon C Sal￿bUry R Brown M Sandys A Stt)ker l Moulton R Bonham G wh￿Orth (Appointed 21 June 20231 Charlty number 103COJ2 Prfncipal address Scutcheon House Fam Far Sawr Ambleside Cumbriz LA22 OLQ Independewrt examiner Ian Thompson FCA Saint & Co Chartered Accountants The Old Police Station Church Street Ambleside Cumbria LA22 08T HAWKSHEAD GRAMMAR SCHOOL FOUNDATION Trustees. rep)rt Independent examiner's rep Statement of finanoal activikn Balance Sheet Notes to the financial swments 7-18 HAWKSHEAD GRAMMAR SCHOOL FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 OCTOBER 2023 The trustees present their annual report and financial statements forthe year ended 31 (ktober 2023. The financial statements have been prepared in ￿Co(danCe with the accounting policies set out in rnote i to the financial Statements and comply wth the charTty's Igoverning documentl. the Charities Art 2011 and -Accounting and Reportin8 by Charitie5'. Statement of Recommended Practice applicable to charit4e5 preparin8 their accounts in accordance with the Financial Reporting Standard applicable in the UK and RepublK of Ireland IFRS 1021" (effective l January 20191. Oblectlve5 and actl¥ftles Haw￿head Grammar School Foundation was set up in 158S by Edwin Sandys, then Archbishop of York. under Letters Patent from aueen Elizabeth l. for the purpose of running a boys. grammar school. It did so for over 3(KJ years until the school closed in 1909. The Foundation now runs the school as a museum and continues to provide education31 and vocationèl grants (known a5 Sandys Exhibitionsl to young people from the Ancient Parish of Hawkshead. Ir also owns and lets various endowed properbes in the village. These rents. income from its investments. and ffluseum entrance fees. provide the main sources ol income. In 202¥23, applications for educatyonal and WOC*ional grants were invited for submis%on 3t the start of the academic year in September, so that all appli(ations could be considered together, and fair and equitable allocations made within the grant budget. Grdnts are made to younR people between the ages of 1&25 studwng at a recognised university, colle8e, apprenticeship or similar ell￿atiOnal facility- They must reapply for each year of their course, and in second and Subseque years rnust provide evidence of satisfactory attendance and ￿Ults frorn their previous year. In 202W3. in recognition of the fact that there is limit￿ assstanie WEth the cost of transportation to schTh)l or 6th tom) colleges for 16-18 year olds. and all young people must travel outside the parish to attend a xhool or 6th forrn college. the Trustees a8reed to continue the smaller grants for a55i5tance wirh transportration which were started in 2019. This enables the grant programme to benefft a greater proportion of the young people in the parish. Efforts made to broaden publicity for the grant5 continue to encourage a variety of applic*ions and in 202¥23 the following grants were awarded.. eleven for the uni¥ersity/colle8elapprentiC£5hip grant and seven for the transportation assistance grènt. Total disbursement was £12.767. The Trustees are satisfied that the 8rnnt5 are now reaching most ol the eligible young people in the parish. Public beneftt The trustees have paid due r￿rd to guidance ssued by the Charty Commission in detiding what actNities the charity should undertake. HAWKSHEAD GRAMMAR SCHOOL FOUNDATION TRU5fEES' REPORT {CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023 Achlevemefvts and performance Slgnificant QttAVities ond ochievements ogoinrtobRcfrts Improvements at the museum continued in 2023. 14ew temporary e¥hibttiOll5 were installed, more family-friendty activities were introduced, and shop merchandise was expanded. Openin8 day5 were increased to include daily opening during school holidays to reflect visitor demand. lrtemational tour vists ￿L￿)UndE¥J strongly and althou8h not quite back to pre-pandemic leve15, V15itor numbers from tours increased by 40% over 2022. c￿erall. visitor numbers In(￿ased by 13% over 2022 and were higher than 2019. Diffe￿nt approache5 trj raising the museum profile and attr￿lln8 new visitors continue to be explored. Museum management and development continues to be overseen by the Direttor. The Irbrary cataloguin8 and repair projert continues t*hth a small team of volijnteers. About 30% of the books have been catalogued and volunteers are thined to do a range of minor repairs. Enquiries from academics and historians about the school and library continue to grow. Future phases of the projert will consider devdoping grant prow)sa15 to fund the costs of cataloguing. conservation, and preservation. Income frorn property rental has increased slightly due to a full year tenanty at the School House Barn and rent increases following 3 yearly rent reviews at Old khool House B&B and School House Cotta8e B&B. It is Trustees, intent to allocate porbon of funds each year to rernedial mainfenance attwity. In 202123 this included treework across all properties to address OUtstsndin8 rernedial worl and repairlreplacefflent ofthe downpipes and guttering at the Museum Cottages. Investments have 8150 recovered in line wtth the recovery of the stock market and investment income 15 close to pre-pandemic levels. Interest income has recovered in line wrth bank interest rates. The Foundation Sbll ha5 considerable cash reserves. sufficient to cover Several years of operating expenditure. The Trustees regular￿ review the risks opportunttTre5 by the Foundation and make plans accordingly. The Foundation's reserves policy designaes a portion of reserves for property rnaintenance. a portion Of reserves for future conservaiion and ifflprovements to the library. and a further portN)n of reserves for future property developmenr. The policv also places a limit on the proportion of unrestricted reserves held in investments and pre5cribe5 a minimum operating reserve proportional to fixed operating costs. Financial PTocedureswere a150 reviewed and app￿Ved by Trustees. Flnartclal revlew Income from all sources has increasEd compared to 2022. and together conrributed £69.37912022.. £62,485). This was largely due to a 14% increase in museum admissws and shop sales I£L7351. a 9% incTease in rentsl income1£3.6601, and the resumption of inter￿1 incowne1£3.7431. Expenditure was sli8htly higher than the pre￿0v$ financial year at £76.612 12022- E76.3021. Museum operatin8 costs and educational grarnt expenditure remained broalty similar. Totsl annual expenditu￿ wll continue to fluctuate based on the timing and needs of the maintenance programme. Expenditure 15 experted to ￿Ma[H close to this level due to necessary property maintenance. the development of the library con5erv*ion projett and the Trustees. commitrnent to to ensure the educational grants support as many y¢)ung people in the parish as possible. Investrnents regittered a loss of £2.16412022: £15.6291. (knrall. the charty ran 8 105$ of £9,397 in the year ended 31 Cttober 2023, versus a loss of £29.446 in the year ended 31 Lktober 2022. At the reporting date reserves had dec￿ased to £323,318,310 from £327.707 at the previous reporting date. Reserves policy It ts the poliry of ihe chartty that unrestricted funds whKh have not been desenated for a specific use should be maintained at a level equNalent to between three and six month's expenditure. The trustee5 consider that reserves at this level will ensure that. in the event of a Significant drop in fundin& they will be able to (ontinue the charty's current attivities while consideration is w.ven to ways in which additional fvnds may be raised. This level of reserves ha5 been maintained throughout the year. HAWKSHEAD GRAMMAR SCHOOL FOUNDATION TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 ocn?BER 2023 Plans for future periods The Foundation continues to operate in good financial heatth. Visitor tootfall to the museum in 2023 increased 13% over 2022 aKdill5t 3 more challenging outlook for the wsitor economy. New rotating exhibition5 have been instslled in 2024 and the Head'5 Study has been opened to wsitors ￿th a permanent Wordworth display. increasing exhibition space. Admi55ion5 price5 have been increased in 2024 to reflert the rise of increased fixed operating costs. however to offset this, a discounted Family Pass has been introduced as parr of the focus on attracting a broader range of wsitors. The staff continue to explore ways of ra15ing awareness of the rnuseum and library both localfy and further ar￿￿￿. struc￿le. governan￿ and manaeement The Foundation has 6 representative Trusiees apw)inted by various local authorities and one by the Carlisle Diocese of the Church of England, and up to three co-optative Trustees appointed by the governing body. Appointrnent5 are for five years and are renewable. The Trustee5 normalty meer at least a year (usually Lktober and April, and on other occasions as requiredl to consider grant applEcations and to manage the affairs of the Foundation. including management and maintenance of the endowed properties. Decisions are tllade to ensure that lunds a￿ available to maintain the efficient running of the Foundation, with the goal of continuwl provision of educational grants and 5UStainable operntions atthe rnuseum. Recruitment ond oppointmentoftrustees The trustee5' report was approved bythe Board ofTwstees. M Sandys Tw5tee Date.. HAWKSHEAD GRAMMAR SCHOOL FOUNDATION INDEPENDEMf EXAMINER'S REPORT TO THE TRusfEES OF HAWKSHEAD GRAMMAR SCHOOL FOUNDATION I report to the trustee5 on my examtnation of the financial statements of Hawksheal Grammar School Foundation (the charity) forthe year ended 31 (ktober 2023. Responslbllltles ènd basi5 of report As the trustee5 of the charity you are r£s￿nSIble for the preparation of the financial statements in accordance with the requirements of ihe Charr(ie5Act 2011 lthe 2011 P£tl. I report in respett of my examination of the charitVs financial ststew*nts carried ovi under section 145 of the 2011 Art. In carrying out my exaMinat￿n I have lollowed all the applicable Oirection5 given by the Charity Comrnis5ion under sectlon 14515llbl of the 2011 Att. Independtrrt examiWs statement Your attention is drawn to the tact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charitses preparing their accounts in accordance wr(h the Finanaal RerKJrting Standard applicable in the UK and Republic of Ireland IF￿$ 1021 in preference to the kcouniing and Reporting by Charities.. Ststement of Recommended Prattice issued on l April 2W5 which is referred to in the extant regulat￿n5 but has now been ￿thdraVrn. l understsnd that this ha5 been done in order for financial statements to provide a true and fair view ITh accordance with Generally AC￿pted Accounting Practice effettr¥e for reFK)rting pernds b￿"nnIng on orafter l January 2015. I have completed my examination. I confimi that no matte15 have come to my attention in connection wth the examination giving me cause to believe th3t in any material respec accounting records were not kept in respett of the charity a5 ￿QuIred by seLtion 130 ofthe 2011 Att: or the financial ststements do not ￿(Ord with those record5." or the financial Statements do not Comp￿ with the applicable requirements conceming the form and content of accounts set out in the Charities IAccounts and Reporrsl Regulation5 2￿)8 other than any requirement that the accounts give a true and fair view which is not a matter (x)nsidered as part of an independent examination. I have no concwns and have come ￿rosS no other matters in connection the examination to which attention Should be drawn in this report in order to enable a proper understanding of the ffinancial ststements to be reached. laTrThrKnpson FCA Saint & Co Chartered Accountants The Old Police Station Church Street Amble5idE Cumbria LA22 OBT Dated.. HAWKSHEAD GRAMMAR SCHOOL FOUNDATION STATEMENT OF FINANCIAL AcnvmES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2023 Tt)tal funds 2023 funds 2023 fund5 2022 funds 2022 2023 2022 Notes Income from: Don*iofts and legacies Charitable activiues Othec trading activr(ies InV￿tMents 394 12,741 1,508 54,736 394 3,082 11,497 1,017 46,889 3.082 11,497 1,017 46,889 12.741 1.508 54,736 Totsl income 69,379 69.379 62.485 Expendfture on: Raising funds Charitable activ¢tyes Other expenditure 87S 875 542 542 68.177 7,583 65.688 10.049 68.177 7.583 14 10.049 Totsl expenditure 76,612 76.612 76,302 76.302 Net 8ain51llossesl on inve5tmÈnts Is 12.1641 12.1641 115.6291 115,6291 Net *xpendlture and mo%*ment in funds 19.3971 19,3971 129,4461 129.4461 Recondllatlon of funds: Fund balances at l November 2022 270,271 57.436 327.707 299.717 57,436 357,153 Fund b•lances at 31 Lktober 2023 2EII.874 57.436 318,310 270.271 57.436 327,707 The staternent of financial activitses includes all 8ains and recognised in the year. income and expendff(ure derive from continuing attrvtknes. HAWKSHEAD GRAMMAR SCHOOL FOUNDATION BALANCE SHEEr ASAT31 OCTOBER 2023 21n3 2022 Fixed assets Tangible assets Investments 17 57.436 147,626 57.436 149.790 205.C62 207,226 Current assets Stocks Debtors Cash at bank and in hand 19 1.744 5.378 124.868 1,020 6,405 124.513 I31.￿1 118,7421 131.938 111,4571 Creditors: amounts falling due wlthln one ￿ar 21 Net cuTherrt a55ets 113,248 120.481 Totsl assets re￿ Cu￿nt liabilitles 318.310 327.707 Net assets exduding pen51on Ilablllty 318,310 327.707 The funds of the charlty Endowment fund5 Unre5trirted funds 57,436 260,874 57,436 270,271 318.310 327.707 The financial ststements were approved by the tru5tee5 On......................... M Sandys Trustee l Moulton HAWKSHEAD GRAMMAR SCHOOL FOUNDATION NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023 Accounti￿ policiÈ5 Charlty Inlrym•tion Hawk5head Grdmmar School Foundation is a a public benefft entity and a registered charity in England and Wales. The address of the principal office is 5cutcheon House Farm. Far Sawrey. Ambleside, Cumbria LA22 OLQ. The Hawk5head Grarnmar School museum at)d library is Situated at Main Street. Hawkshead. Cumbria L422 ONT. 1.1 Accountlng con¥entlon The financial statements have been prepared in actordance with the char￿￿.5 Igoveming documentl. the Charities Act 2011, 102 -The Financial Reporting Standard applicable tn the UK and Republic of Ire13nd° I"FRS 102-1 and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Prattice applieable to charities preparin8 their accounts in accordarKe with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" lefFective ljanuary 20191. The charity is a PublK Benefit Entity as defined by FRS 102. The charity has tsken aYvant3Re of the provisions in the SORP forcharities not to prepare a Ststement of Cash Flows. Tre financial statements are p￿pared in 5terlin& which ￿ the furKtional currency of the charty. Monetary amount5 in these financial statements are rounded to the nearest £. The financial statetnents have been prepared under the historical cost convention. The principal accounttng policies adopted are set out bek)w. 1.2 Golng concern At the time of approving the financial gatements, the trustee5 have a ￿0$Onable expectation that the charity has equate resources to continue in operational existence for the foreseeab￿ futu￿. Thus the trustees continue to adopt the going concern basis of accountin8 in preparin8 the finanual statements. 1.3 Charltsble fvnd5 Unrestricted funds are available for use at the discfetion of the trustees in furtherance of their charitable objectives. Restrirted fund5 are subject to specific conditions by donors or grantors as to how they may be L￿. The purposes and uses of ihe re5trirted funds afe set out in the Th)tes to the financial statements. Endowment funds are wbject to specFfic conditK>ns by that the capital must be maintained by the charity. Endowment funds, representing freehold land and properties stated at C05t, are held for the benefit of the charity as capital funds. The lettings income and associated expenditure is unrestricted. IA Income Income is recognised when the charity is legal￿ entitled to it after any perlDrmance Cond￿On5 have been meL the amounts can be measured reliabty. and li is probable that income wll be reteived. HAWKSHEAD GRAMMAR SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023 Accourtlni polldes IContinuEdl 1.5 Expendituwe Expenditure is recognised once there is a legal or tonstructNe obligation to tTrnsfer economic benefir to a third party. it is probable that a rransfer of economii benefits will be required tn settlemenL and the amount of the obligation can be Measur￿ ￿lIablY. Expenditure 15 Cl￿s￿led by xrNity. The costs of e￿h activtty are made up of the total of direct costs and sha￿d costs. including supwrt Costs inVo￿ed in undertaking exh actwity. Direcr costs atributable to a sinJe attNity are all(xated direttly to that ￿l￿ty. Shared costs which contribute to more than one aCtI￿ty and support costs which are not attributableto a *ngle actNity ère apportioned between those activrfties on a basis con5i5tentwith the use of resources. Costs that are shared by the Museum and the Ubrary a￿ aPptsr￿ned on an estimated arealconsumption basi5 01 87.5% and 12.5% to the Museum and knbrary activities reSpectr¥e￿. Governance costs are primarily associated with the charity's constitutional and statutory obligaknons. 1.6 Tan8lble fixed assets Tangible fixed assets are initially measur￿1 at C05t arbd sub5equentyy measured at cost or valuation. net of depreciation and any impairment losses. Items under £750 are not capitsli5ed and are wrrllen off to expendtture in the Statement of financial attivities when the asset 1$ 3cquired. Dep￿tIatIon i5 recognised so as to vrrite off the cost or valuatM)n of assets less thar residual values over their useful lives on the following bases.. Freehold land and buildin&% No depreciation The gain or loss arising on the disposal of an a￿ is deremin￿ as the difference btheen the sale proceed5 and the carrylng value of the a$5et. and is reroKnised in the ststementof financial acbvities. No depr&iation is charged on the freehold land and properbe5 because they are maintained in suth a state of repair thattheir estimated residual value is not less than their cost. Some of the endowment land and properbes a￿ held for investment purposes. though there is no intention ever to sell them. The ￿nts1 incorne F5 shown in investment income in the note5 to the accounts. Undei FRS102 investment property should initialty be r￿r{je￿ at cost and then revalued at fair value at each reportin8 date. However, the trustees Consider that a reliable Measu￿ of fair value is not available for any of the investment land and properties wr(hout undue cost or efforr. iknder FR5102 the invertment land and properties are therefore carried as tangible assets at cost until it is experted that tsirvalue will be reliabty measurable on an onying t￿SiS. 1.7 Fixed a55et in￿tments Fixed ￿Set investments are initially measured at trans￿l0n pr￿e exduding transaction costs. and are subsequently measured at fair value at each reporting date. Changes in fair value a￿ retogni5ed in net incomellexpenditurel for the vear. Transaction costs are expensed as incurred. Lh)listed equity investments are initially recorded at cost, and subsequentty rneasured at fair value. If frdir value cannot be reliably measured, assets are measured at cost less imparrment. Listed irhvestments are measured * fair value with changes in fair value being recognised in income or expenditure. HAWKSHEAD GRAMMAR SCHOOL FOUNDATION NOTES TO THE FINANCIAL sfATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 ocfoBER 2023 Acc￿nting prficie5 Icontlnuedl 1.8 Impairment of fixed assets At each repothng end date. the chartty reviews the carrying amounts of its tangible assets to determine whether there 15 any indicatlon that tlM>se assets have Suffered an impaiment loss. If any such indication exists. the recoverable amount of the asset is estimated in order to detemiine the extent of the impairynent loss lif any). 1.9 Stocks Stocks are stated at thè lower of cost and esbmated selling price less costs to ojmplete and Sell. 1.10 Cash and czsh equlvalents Cash and cash eqU￿alert$ include cash in hand. deposits hehj at (all ￿th bank5. other short-term liould investmènts th original maturities of three months or less, and bank overdraft5. Bank overdrafts are shown within borrowings in current liabilities. 1.11 F•nancial in51rurnents The charity has eletted to app￿ the p￿ISionS of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instrurnents Issues. of FRS 102 to all of its financial instruments. Financial instruments are ￿cOgnised in the charity'5 balance Sheet when the charrty becomes party to the contractual provisions of the instrurnent. Financial assets and liabilities are offset, with the net arnounts presented in the financial ststetnents, when there is a le8ally enforceable right to set off the recognised amounts and there is an intention to settle on 3 net basis or to realise the &sÈt and settle the liability simuttaneoU5￿. Bvsi¢flnonur ResourcesGaln5 al￿105$e$ At 31 October expended 2022 General funds 299.717 62.48S 176.3021 115.6291 270.271 25 Anal)ryis of net a55ets between fuThts Endowment nd5 2023 Total funds 2023 2023 At 31 Ortoljer 2023: Tangible assets Investments Current assetsllllabilitie51 57.436 57.436 147.626 113,248 147.626 113.248 260.874 57,436 318,310 Totsl fvnds 2022 funds 2022 2022 At 31 October 1022: Tangible assets Investments Current a55etsllliabilthÈ%l 57.436 57,436 149.790 120.481 149.790 0,481 270.271 57.436 327,707 26 Related ￿rtY trnnsartlons There were no diKJosable related party tranwtions during the year12022- none). 18-