2021-08-31-accounts

Company registration number: 02967199 Charity registration number: 1041220

Queen Elizabeth's Grammar School Blackburn Limited

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 August 2021

Queen Elizabeth's Grammar School Blackburn Limited

Contents

Reference and Administrative Details	1
Strategic Report	2 to 3
Trustees' Report	4 to 5
Statement of Trustees' Responsibilities	6
Independent Examiner's Report	7
Statement of Financial Activities	8
Balance Sheet	9 to 10
Statement of Cash Flows	11
Notes to the Financial Statements	12 to 27

Queen Elizabeth's Grammar School Blackburn Limited

Reference and Administrative Details

Trustees Mr G Turner Mr DA Peat Mr MJ Gorick Mr IDH Hamilton Mrs L Crabtree Principal Office Queen Elizabeth's Grammar School West Park Road Blackburn Lancashire BB2 6DF The charity is incorporated in England and Wales. Company Registration Number 02967199 Charity Registration Number 1041220 Independent Examiner Mark Bradley BA FCA Beever and Struthers Suite 9B The Beehive Lions Drive Blackburn BB1 5QS Bankers Lloyds TSB Bank plc Church Street Blackburn BB2 1JE Investment Advisors Brewin Dolphin 1 The Avenue Springfield's Square Manchester M3 3AP Insurance Brokers AJ Gallagher Insurance Brokers Ltd St George's House Drakehouse Crescent Sheffield S20 7HT

Page 1

Queen Elizabeth's Grammar School Blackburn Limited

Strategic Report for the Year Ended 31 August 2021

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 August 2021, in compliance with s414C of the Companies Act 2006.

Achievements and Performance

The charity continues to provide support, both financial and other, for the Free School, QEGS Blackburn Academy Trust (the "Academy"), established in September 2014.

The main day to day activities of the charity has during the year comprised the operation of the nursery school. Subsequent to the year end, with effect from 31 December 2021 the operations of the nursery school were transferred to QEGS Blackburn Academy Nursery Limited. In addition, the charity continues to provide financial support for a variety of Free School initiatives with due regard for the constraints placed upon it by applicable laws and regulations.

Financial review

These financial statements reflect the charity's financial activities and income and expenditure for the year ended 31 August 2021. The comparative figures in these financial statements represent the year ended 31 August 2020.

The net increase in funds for the year amounted to £316,784 (2020: Net decrease £80,716).

At 31 August 2021 the Charity's net assets stood at £2,954,323 (2020: £2,637,539) with a funding position comprised of bank balances of £121,583 (2020: £464,219). In addition, the Charity held an investment portfolio with a value of £2,316,318 (2020: £1,701,499)

Policy on reserves

The charity's unrestricted funds are split between those designated for specific purposes and those available for the day-to-day requirements of the charity. Designated funds are the amounts invested in land and buildings. The Trustees consider that the Company's assets are available and adequate to fulfil its obligations.

The charity held unrestricted reserves at 31 August 2021 of £1,833,914 (2020: £1,537,428) which comprised £511,534 (2020: £513,436) held in finance land and buildings and a surplus on general reserves of £1,322,380 (2020: £1,023,992) represented by investments and working capital.

Investment policy and objectives

The charity holds investments included within unrestricted and restricted funds. The Trustees have delegated the management of the investment portfolio to an investment manager, Brewin Dolphin, with discretionary powers in relation to the management of the charity's investments. The Trustees' aim is to maximise the overall rate of return whilst adopting a medium risk profile. Performance is monitored quarterly and the Trustees have also set a number of benchmark performance indices in order to monitor the long-term performance of the investment portfolio on a three year rolling basis.

The recent performance is summarised as follows:

Page 2

Queen Elizabeth's Grammar School Blackburn Limited

Strategic Report for the Year Ended 31 August 2021

	2021	2020	2019
	£	£	£
Investments	2,316,318	1,701,499	2,021,886
Investment income (including interest on surplus cash deposits)	43,445	56,761	59,535
Realised and unrealised gain / (loss)	348,754	(38,433)	45,675

Plans for future periods

Aims and key objectives for future periods

For a number of years the charity in cooperation with QEGS Blackburn Academy Trust has been actively working to transfer the nursery to the Academy. This transfer was completed on 31 December 2021. We will continue to administer both the unrestricted and restricted funds, in support of the Academy.

Risk management

The Trustees continue to examine the principal areas of the charity's operations and consider the major risk faced in each of the areas.

It is the opinion of the Trustees that the charity has established resources and a review system which, under normal conditions, should allow these risks to be mitigated to an acceptable level in its day to day operation.

The strategic report was approved by the trustees of the charity on .................... and signed on its behalf by: 16 March 2022

......................................... Mr MJ Gorick Trustee

Page 3

Queen Elizabeth's Grammar School Blackburn Limited

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 August 2021.

Objectives and activities

Objects and aims

The object for which the Charity is established is to advance the education of the pupils, prospective pupils or former pupils of QEGS Blackburn Academy Trust, (the Free School), by providing and assisting through, the provision of goods, services and facilities, or other benefits for pupils not required to be provided by the Local Education Authority for education at the school.

Following the transfer of the mainstream education operations to the free school, the charity has continued to deliver these aims through the following strategies:

• Operation of an oversubscribed nursery provision (until 31 December 2021).

• Management of the charity's enrichment fund and other restricted funds,

• Management of the charity's investment portfolios to maximise the benefit available to the charity to deliver the above aims.

Public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Structure, governance and management

Nature of governing document

Blackburn Grammar School was originally a Chantry School founded in 1509 by Thomas Howard, the Second Earl of Derby and associated with the Parish Church of Blackburn. It was dis-endowed in the reign of Edvard VI and re-established and constituted a Corporation by Royal Charter in 1567 by Queen Elizabeth I.

The Company was incorporated on 13 September 1994. On 31 January 1995 the Charity Commissioners approved and established a scheme under which Queen Elizabeth's Grammar School Blackburn and its property are administered and managed by Queen Elizabeth's Grammar School Blackburn Limited which is its Trustee. The School's land and buildings are vested in the company. In September 2014, the operations of the school, with the exception of the nursery provision was transferred to QEGS Blackburn Academy Trust. Since 1 September 2015 the charity has managed the remaining funds of the charity and retained the reversionary rights to the property which are provided to the Academy Trust under a 125 year lease. From 1 September 2015 the charity also continued to manage the operation of the nursery until its transfer to the Academy on 31 December 2021.

Arrangements for setting key management personnel remuneration

The Trustees consider the board of Trustees as comprising the key management personnel of the charity, as they are in charge of directing and controlling the charity. All trustees give their time freely and no trustee remuneration was paid in the year.

Page 4

Queen Elizabeth's Grammar School Blackburn Limited

Trustees' Report

Major risks and management of those risks

The Trustees continue to examine the principal areas of the charity's operations and consider the major risk faced in each of the areas.

It is the opinion of the Trustees that the charity has established resources and a review system which, under normal conditions, should allow these risks to be mitigated to an acceptable level in its day to day operation.

Important non-adjusting events after the financial period

Subsequent to the year end, with effect from 31 December 2021, the operations of the nursery school wrere transferred to QEGS Blackburn Academy Nursery Limited.

16 March 2022 The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Mr MJ Gorick Trustee

Page 5

Queen Elizabeth's Grammar School Blackburn Limited

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Queen Elizabeth's Grammar School Blackburn Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and 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 charitable company will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees of the charity on .................... and signed on its behalf by:16 March 2022

......................................... Mr MJ Gorick Trustee

Page 6

Queen Elizabeth's Grammar School Blackburn Limited

Independent Examiner's Report to the trustees of Queen Elizabeth's Grammar School Blackburn Limited

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2021 which are set out on pages 8 to 27.

Respective responsibilities of trustees and examiner

As the charity’s trustees of Queen Elizabeth's Grammar School Blackburn Limited (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of Queen Elizabeth's Grammar School Blackburn Limited are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

Since Queen Elizabeth's Grammar School Blackburn Limited's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1. accounting records were not kept in respect of Queen Elizabeth's Grammar School Blackburn Limited as required by section 386 of the 2006 Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or

4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... Mark Bradley BA FCA

Beever and Struthers Suite 9B The Beehive Lions Drive Blackburn BB1 5QS

16 March 2022 Date:.............................

Page 7

Queen Elizabeth's Grammar School Blackburn Limited

Statement of Financial Activities for the Year Ended 31 August 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

		Unrestricted		Restricted		Endowment		Total
		funds		funds		funds		2021
	Note	£		£		£		£
Income and Endowments from:
Donations and legacies	3	2,600		-		-		2,600
Charitable activities	4	538,594		-		-		538,594
Investment income	5	22,141		21,304		-		43,445
Total income		563,335		21,304		-		584,639
Expenditure on:
Raising funds	6	(5,498)		(6,897)		-		(12,395)
Charitable activities	7	(604,214)		-		-		(604,214)
Total expenditure		(609,712)		(6,897)		-		(616,609)
Gains/losses on investment
assets		202,863		145,891		-		348,754
Net income		156,486		160,298		-		316,784
Transfers between funds		140,000		(140,000)		-		-
Net movement in funds		296,486		20,298		-		316,784
Reconciliation of funds
Total funds brought forward		1,537,428		966,781		133,330		2,637,539
Total funds carried forward	19	1,833,914		987,079		133,330		2,954,323

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 19.

The notes on pages 12 to 27 form an integral part of these financial statements. Page 8

Queen Elizabeth's Grammar School Blackburn Limited

(Registration number: 02967199) Balance Sheet as at 31 August 2021

		2021		2020
	Note	£		£
Fixed assets
Tangible assets	14	511,534		513,436
Investments	15	2,316,319		1,701,499
		2,827,853		2,214,935
Current assets
Debtors	16	13,372		13,970
Cash at bank and in hand	17	121,583		464,219
		134,955		478,189
Creditors: Amounts falling due within one year	18	(8,485)		(55,585)
Net current assets		126,470		422,604
Net assets		2,954,323		2,637,539
Funds of the charity:
Endowment funds		133,330		133,330
Restricted income funds
Restricted funds	19	987,079		966,781
Unrestricted income funds
Unrestricted funds		1,833,914		1,537,428
Total funds	19	2,954,323		2,637,539

For the financial year ending 31 August 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and

• The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 12 to 27 form an integral part of these financial statements. Page 9

Queen Elizabeth's Grammar School Blackburn Limited

(Registration number: 02967199) Balance Sheet as at 31 August 2021

The financial statements on pages 8 to 27 were approved by the trustees, and authorised for issue on 16 March 2022 .................... and signed on their behalf by:

......................................... Mr MJ Gorick Trustee

The notes on pages 12 to 27 form an integral part of these financial statements. Page 10

Queen Elizabeth's Grammar School Blackburn Limited

Statement of Cash Flows for the Year Ended 31 August 2021

		2021		2020
	Note	£		£
Cash flows from operating activities
Net income/(expenditure)		316,784		(80,716)
Adjustments to cash flows from non-cash items
Depreciation (net of reversal of impairment charge)	6	1,902		1,902
Investment income	5	(43,445)		(56,761)
Investment (gains) / losses		(348,752)		29,652
		(73,511)		(105,923)
Working capital adjustments
Decrease in debtors	16	599		72,024
Decrease in creditors	18	(47,099)		(12,275)
Net cash flows from operating activities		(120,011)		(46,174)
Cash flows from investing activities
Interest receivable and similar income	5	43,445		56,761
Purchase of investments	15	(543,710)		(354,892)
Sale of investments		295,745		661,328
Cash added/(removed) from investments		(18,105)		(15,701)
Net cash flows from investing activities		(222,625)		347,496
Net (decrease)/increase in cash and cash equivalents		(342,636)		301,322
Cash and cash equivalents at 1 September		464,219		162,897
Cash and cash equivalents at 31 August		121,583		464,219

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 12 to 27 form an integral part of these financial statements. Page 11

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

1 Charity status

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: Queen Elizabeth's Grammar School West Park Road Blackburn Lancashire BB2 6DF

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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) (effective 1 January 2019)\ - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Queen Elizabeth's Grammar School Blackburn Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Page 12

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 13

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

Tangible fixed assets

Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Freehold Land and Buildings

Depreciation of buildings is charged on a straight line basis, based on an estimated useful economic life of 50 years. Land, stated at £50,000, (2020: £50,000) is not depreciated.

Depreciation of other facilities included in land and buildings is charged on a straight line basis, at 5% to 10% per annum.

Major Expenditure on Fixtures, Fittings & Equipment and Motor Vehicles

Items of major capital expenditure are depreciated over their estimated useful lives. The rates used on the straight line method are as follows:

Fixtures. fittings and equipment - 10% - 33.3% per annum

Minor Capital Expenditure

Minor capital expenditure is written off in the year in which it is incurred.

Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Page 14

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

3 Income from donations and legacies

	Unrestricted
	funds		Total
	General		2021
	£		£
Donations and legacies;
Unrestricted donations	2,600		2,600
	2,600		2,600
	Unrestricted
	funds		Total
	General		2020
	£		£
Donations and legacies;
Unrestricted donations	143,768		143,768
Grants, including capital grants;
Government grants	31,578		31,578
	175,346		175,346

Page 15

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

4 Income from charitable activities

Nursery School Nursery School

Unrestricted
funds		Total
General		2021
£		£
538,594		538,594
Unrestricted
funds		Total
General		2020
£		£
511,711		511,711

5 Investment income

				Unrestricted
				funds		Restricted		Total
				General		funds		2021
				£		£		£
Income	from	listed	investments	22,141		21,304		43,445
				22,141		21,304		43,445
				Unrestricted
				funds		Restricted		Total
				General		funds		2020
				£		£		£
Income	from	listed	investments	30,211		26,550		56,761
				30,211		26,550		56,761

Page 16

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

6 Expenditure on raising funds

a) Investment management costs

					Unrestricted
					funds		Restricted		Total
					General		funds		2021
			Note		£		£		£
Other investment management costs;
	Other portfolio management costs				5,498		6,897		12,395
					5,498		6,897		12,395
					Unrestricted
					funds		Restricted		Total
					General		funds		2020
			Note		£		£		£
Other investment management costs;
	Other portfolio management costs				2,873		5,836		8,709
					2,873		5,836		8,709
7	Expenditure on charitable activities
		Activity					Governance
		undertaken			Grant funding		and support
		directly			of activity		costs		2021
		£			£		£		£
Nursery School		586,789			-		17,425		604,214
		Activity					Governance
		undertaken			Grant funding		and support
		directly			of activity		costs		2020
		£			£		£		£
Nursery School		715,499			36,775		25,118		777,392

Page 17

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

8 Analysis of governance and support costs

Charitable activities expenditure

			Unrestricted
			funds	Total	Total
			General	2021	2020
		Basis of allocation	£	£	£
Administration	costs	100%	154	154	2,585

All support costs are allocated to the charity's only activity, the nursery provision.

Governance costs

	Unrestricted
	funds		Total		Total
	General		2021		2020
	£		£		£
Independent examiner fees
Examination of the financial statements	3,120		3,120		5,460
Legal fees	14,151		14,151		17,073
	17,271		17,271		22,533

9 Net incoming/outgoing resources

Net outgoing resources for the year include:

				2021		2020
				£		£
Depreciation	of	fixed	assets	1,902		1,902

10 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

Page 18

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

11 Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
	2021		2020
	£		£
Staff costs during the year were:
Wages and salaries	323,104		338,289
Social security costs	14,168		15,379
Pension costs	12,928		13,044
	350,200		366,712

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:

the year expressed as full time equivalents was as follows:
	2021	2020
	No	No
Nursery staff	24	24
Non-executive Trustees	5	5
	29	29

No employee received emoluments of more than £60,000 during the year.

12 Independent examiner's remuneration
	2021		2020
	£		£
Examination of the financial statements	3,120		5,460

Page 19

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

13 Taxation

The charity is exempt from tax on income and gains falling within Section 505 of the Taxes Act 1988 or Section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

14 Tangible fixed assets

14 Tangible fixed assets
			Fixtures,
	Freehold Land		fittings and
	and buildings		equipment		Total
	£		£		£
Cost
At 1 September 2020	10,342,930		5,378		10,348,308
At 31 August 2021	10,342,930		5,378		10,348,308
Depreciation
At 1 September 2020	9,829,494		5,378		9,834,872
Charge for the year	7,327		-		7,327
Impairment charge written back	(5,425)		-		(5,425)
At 31 August 2021	9,831,396		5,378		9,836,774
Net book value
At 31 August 2021	511,534		-		511,534
At 31 August 2020	513,436		-		513,436

Freehold land and buildings were valued on an open market existing use basis at the time they vested in Queen Elizabeth's Grammar School Balckburn Limited on 31 January 1995 and this amount was treated as cost for the purposes of the Financial Statements. All fixed assets are used for direct charitable purposes.

During the year ended 31 August 2015 an impairment provision was recognised above to reflect the granting of 125 year peppercorn leases to QEGS Blackburn Academy Trust in respect of all land and buildings and equipment, except those relating to the nursery. The value of the Charity's interest in the property subject to the leases represents the discounted value (using a discounted rate of 4% and assuming no growth) of the reversionary rights in 119 years.

The remaining property held in respect of the nursery was revalued as at 1 September 2015 by DVS, on a depreciated replacement cost basis, resulting in a revalued cost at that date of £416,348 inclusive of land element of £50,000 which is not depreciated.

Page 20

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

15 Fixed asset investments

	Listed		Cash held with
	investments		investors		Total
	£		£		£
Cost or Valuation
At 1 September 2020	1,617,708		83,789		1,701,497
Revaluation	348,752		-		348,752
Additions	543,709		18,106		561,815
Disposals	(295,745)		-		(295,745)
At 31 August 2021	2,214,424		101,895		2,316,319
Net book value
At 31 August 2021	2,214,424		101,895		2,316,319
At 31 August 2020	1,617,708		83,789		1,701,497

The following investments, which are included above, are considered material in the context of the investment portfolio and represent 5% or more of the total investment value at 31 August 2021:

		£				%
COIF Accumulation Shares		258,088				11.14%
COIF Income Shares		362,674				15.66%
Charifund Income Shares		153,461				6.63%
Lloyds Bank PLC 13%		157,167				6.78%
16 Debtors
		2021				2020
		£				£
Other debtors		13,372				13,970
17 Cash and cash equivalents
		2021				2020
		£				£
Cash at bank		121,583				464,219

Page 21

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

18 Creditors: amounts falling due within one year

18 Creditors: amounts falling due within one year
	2021		2020
	£		£
Other taxation and social security	-		2,904
Other creditors	5,364		47,681
Accruals	3,121		5,000
	8,485		55,585

19 Funds

19 Funds
	Balance at
	1										Other		Balance at
	September		Incoming		Resources						recognised		31 August
	2020		resources		expended		Transfers		gains/(losses) 2021
	£		£		£		£				£		£
Unrestricted funds
General
Free General Reserves	1,023,992		563,335		(607,810)		140,000				202,863		1,322,380
Designated
School Land and Buildings	513,436		-		(1,902)			-			-		511,534
Total unrestricted funds	1,537,428		563,335		(609,712)		140,000				202,863		1,833,914
Restricted funds
Digital Art Project	292		-		-			-			-		292
Junior School Hall Fund	2,362		-		-			-			-		2,362
Stained Glass Window Fund	1,155		-		-			-			-		1,155
Singleton Travel Award Fund	(1,165)		-		-			-			-		(1,165)
Clare Radcliffe Accumulated
Income	4,754		-		-			-			-		4,754
Zeebrugge Fund	837		-		-			-			-		837
Enrichment Fund	102,016		-		-			-			-		102,016
Prize and Scholarship Fund	78,987		-		-			-			39,161		118,148
Bowland Trust	257		-		-			-			-		257
John Law Scholarship	540,915		9,604		(4,812)			-			106,233		651,940
Blakley Sixth Form Languages
Scholarship	236,371		11,700		(2,085)		(140,000)				497		106,483
Total restricted funds	966,781		21,304		(6,897)		(140,000)				145,891		987,079
Endowment funds
Permanent
Mrs Clara Radcliffe Trust
Fund: Capital - Permanent
Endowment Fund	1,368		-		-			-			-		1,368

Page 22

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

	Balance at
	1											Other			Balance at
	September		Incoming		Resources							recognised			31 August
	2020		resources		expended				Transfers		gains/(losses) 2021
	£		£			£			£			£			£
Expendable
Prize and Scholarship Funds	131,962		-				-			-		-			131,962
	131,962		-				-			-		-			131,962
Total endowment funds	133,330		-				-			-		-			133,330
Total funds	2,637,539		584,639		(616,609)					-		348,754			2,954,323
	Balance at 1									Other					Balance at
	September		Incoming			Resources				recognised					31 August
	2019		resources			expended				gains/(losses)					2020
	£		£				£					£			£
Unrestricted funds
General
Free General Reserves	1,064,375		717,268				(741,588)					(16,063)			1,023,992
Designated
School Land and Buildings	515,338			-			(1,902)					-			513,436
Total unrestricted funds	1,579,713		717,268				(743,490)					(16,063)			1,537,428
Restricted
Digital Art Project	292			-					-			-			292
Junior School Hall Fund	2,362			-					-			-			2,362
Stained Glass Window Fund	1,155			-					-			-			1,155
Singleton Travel Award
Fund	(1,165)			-					-			-			(1,165)
Clare Radcliffe
Accumulated Income	4,754			-					-			-			4,754
Zeebrugge Fund	837			-					-			-			837
Enrichment Fund	106,791			-			(4,775)					-			102,016
Prize and Scholarship Fund	77,353			-					-			1,634			78,987
Bowland Trust	257			-					-			-			257
John Law Scholarship	553,215		14,750				(3,854)					(23,196)			540,915
Blakley Sixth Form
Languages Scholarship	259,361		11,800				(33,982)					(808)			236,371
Total restricted funds	1,005,212		26,550				(42,611)					(22,370)			966,781
Endowment funds
Permanent
Mrs Clara Radcliffe Trust
Fund: Capital - Permanent
Endowment Fund	1,368			-					-			-			1,368

Page 23

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

	Balance at 1							Other			Balance at
	September		Incoming		Resources			recognised			31 August
	2019		resources		expended			gains/(losses)			2020
	£		£		£			£			£
Expendable
Prize and Scholarship Funds	131,962		-			-			-		131,962
	131,962		-			-			-		131,962
Total endowment funds	133,330		-			-			-		133,330
Total funds	2,718,255		743,818		(786,101)			(38,433)			2,637,539
Fund Restrictions

Endowment Funds

The endowed prize and scholarship funds comprise of 15 funds amalgamated under a 1961 Minister of Education order together with a legacy received in 199 from the estate of Thomas Duerden and a donation received in 2008 in memory of June Ballantyne.

Restricted Funds

Digital Art Project - monies received and unspent donation from the Brian Mercer Charitable Trust during 2018.

Junior School Hall Fund - donation towards the costs of developing a school hall in the junior school building.

Stained Glass Window Fund - donation to be expended on creating and fitting a stained glass window to celebrate the school's quincentenary year in 2009.

Singleton Travel Award Fund - annual donation, awarded each year to a pupil to assit and overseas expedition.

Clara Radcliffe Accumulated Income Fund - income arising on the permanent endowment fund and is expendable on the school's Radcliffe room.

Zeebrugge Fund - to refurb the pictures and lighting in the Garstang Room.

Enrichment Fund - provide a range of activities to support and supplement school life for pupils of all ages to create a fuller, more meaningful and rewarding learning and development experience at school regardless of family finances. The fund covers grants towards trips and activities, small projects and the delivery of specific enrichment courses e.g. first aid training and leadership development skills.

Prize and Scholarship Funds - established over many years from various donations and bequests. The income and expenditure includes amounts arising both on accumulated restricted funds and the related endowment funds.

Bowland Trust Fund - grant for the purchase of mountain bikes for the PE Department.

The John Law Scholarship and Blakey Sixth Form Languages Scholarship Funds - funds established within the Queen Elizabeth's Grammar School Blackburn Development Trust Fund. The trustees are discussing the purposes of these funds following the transfer of the school to an Academy.

Transfers

The transfer during the year is in respect of the ICAN project which was expended from unrestricted reserves in the prior year.

Page 24

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

20 Analysis of net assets between funds

												Total funds
								Endowment				at 31
	Unrestricted funds				Restricted			funds				August
	General	Designated			funds			Expendable				2021
	£	£			£			£				£
Tangible fixed assets	-	511,534					-	-				511,534
Fixed asset investments	1,180,778		-		1,002,210			133,330				2,316,318
Current assets	10,086		-		124,869			-				134,955
Creditors over 1 year	(8,484)		-				-	-				(8,484)
Total net assets	1,182,380	511,534			1,127,079			133,330				2,954,323
												Total funds
								Endowment				at 31
	Unrestricted funds				Restricted			funds				August
	General	Designated			funds			Expendable				2020
	£	£			£			£				£
Tangible fixed assets	-	513,436					-	-				513,436
Fixed asset investments	736,922		-		831,247			133,330				1,701,499
Current assets	342,655		-		135,534			-				478,189
Current liabilities	(55,585)		-				-	-				(55,585)
Total net assets	1,023,992	513,436			966,781			133,330				2,637,539
21 Analysis of net funds
			At		1
			September				Financing cash				At 31 August
			2020					flows				2021
				£				£				£
Cash at bank and in hand				464,219				(342,636)				121,583
Net debt				464,219				(342,636)				121,583
			At		1
			September				Financing cash				At 31 August
			2019					flows				2020
				£				£				£
Cash at bank and in hand				162,897				301,322				464,219
Net debt				162,897				301,322				464,219

22 Related party transactions

Certain Trustees of the charity, during the year, were also Trustees of the QEGS Blackburn Academy Trust. During the year the charity made donations to QEGS Blackburn Academy Trust amounting to £199,000 (2020: £365,000). At 31 August 2021 the charity was owed £5,522 by QEGS Academy Trust (2020: £40,303 owed to QEGS Academy Trust).

Page 25

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

23 Non-adjusting events after the financial period

Subsequent to the year end, with effect from 31 December 2021, the operations of the nursery school wrere transferred to QEGS Blackburn Academy Nursery Limited.

Page 26

Queen Elizabeth's Grammar School Blackburn Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

24 Prior year Statement of Financial Activities

		Unrestricted		Restricted		Endowment		Total
		funds		funds		funds		2020
	Note	£		£		£		£
Income and Endowments from:
Donations and legacies	3	175,346		-		-		175,346
Charitable activities	4	511,711		-		-		511,711
Investment income	5	30,211		26,550		-		56,761
Total income		717,268		26,550		-		743,818
Expenditure on:
Raising funds	6	(2,873)		(5,836)		-		(8,709)
Charitable activities	7	(740,617)		(36,775)		-		(777,392)
Total expenditure		(743,490)		(42,611)		-		(786,101)
Gains/losses on investment
assets		(16,063)		(22,370)		-		(38,433)
Net expenditure		(42,285)		(38,431)		-		(80,716)
Net movement in funds		(42,285)		(38,431)		-		(80,716)
Reconciliation of funds
Total funds brought forward		1,579,713		1,005,212		133,330		2,718,255
Total funds carried forward	19	1,537,428		966,781		133,330		2,637,539

Page 27

Certificate of Completion

Certificate of Completion
Document Title:	QEGS 31 August 2021 dated.pdf
Reference ID:	YDSJXS
Digital Signature ID:	6960617E499A480858535204BD591CE47D4E309E
Document Pages:	30 (Including certificate)
Security Events	Status	**Timestamp (UTC) **	I.P. Address
Auditor Account Authentication	Complete	2022-03-16 10:05	82.71.231.237
Hashed/Encrypted Document	Complete	2022-03-16 10:08	82.71.231.237
Signer Account Authentication	Complete	2022-03-24 07:38	81.130.134.62
Hashed/Encrypted Signature	Complete	2022-03-24 07:42	81.130.134.62
Signer Account Authentication	Complete	2022-03-24 12:15	213.205.241.90
Hashed/Encrypted Signature	Complete	2022-03-24 12:16	213.205.241.90
User Audit Trail	User	**Timestamp (UTC) **	I.P. Address
Request Created	[e-mail]	2022-03-16 10:08	82.71.231.237
Document Signed	[e-mail]	2022-03-24 07:42	81.130.134.62
Document Signed	[e-mail]	2022-03-24 12:16	213.205.241.90